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1. 
Led by President Trump, Congress recently passed a historic tax cut--taxes went down for individuals and businesses in the United States. What did they hope would be the impact on the US economy?
A.
Individuals would have more money to spend which would increase production and national income.
B.
Individuals would have less money to spend and would have to sit at home and watch paint dry.
2. 
Most Presidents believe that INCREASED government spending is a good thing. However, there are negative consequences. What will happen to taxes if Congress decides to provide FREE college to ALL Americans?
A.
Taxes go down
B.
Taxes go up
C.
National debt goes down
D.
Fewer government goods and services are available
3. 
The President is very worried about North Korea. He gets Congress to declare war on North Korea. It is very expensive to train American men & women and to obtain the latest weapons--thus, the US has to borrow money. What is the likely consequence of the federal government borrowing MORE money from China?
A.
The government will have to pay more in interest and thus less money will be available to lend to individuals and businesses.
B.
The government will have more money to lend to individuals and businesses.
4. 
What is the likely consequence of the federal government borrowing LESS money and balancing its budget?
A.
The government will have to pay more in interest and thus less money will be available to lend to individuals and businesses.
B.
The government will have more money to lend to individuals and businesses.
5. 
The President urges Congress to spend LOTS of money to build "The Wall." What will be the likely impact of this spending?
A.
Because demand goes down, production will slow and incomes will decrease. The US economy may be hurt.
B.
Increased government spending increases demand and may lead to greater employment.
6. 
Speaker of the House Paul Ryan is opposed to high levels of government borrowing and spending. He wants to make sure that the federal government's debt shrinks, so he calls for LESS government spending. What will be the likely outcome of this move?
A.
Because demand goes down, production will slow and incomes will decrease. The US economy may be hurt.
B.
Increased government spending increases demand and may lead to greater employment