Q11. The U.S. ________ is higher than the ________.

• debt; deficit
• surplus; budget
• deficit; debt

Q12. Which of the following terms is used to describe the set of policies that relate to government spending, taxation, and borrowing?

• financial policies
• monetary policies
• fiscal policies

Q13. A fiscal policy would be described as ________ if it allows government to decrease the level of aggregate demand through increases in tax rates.

• discretionary and contractionary
• automatic and contractionary
• discretionary and expansionary