Funds That Are Given by Congress to States and Localities

question 27

Multiple Choice

Funds that are given by Congress to states and localities and that are earmarked by law for specific categories are known as

• A)categorical grants-in-aid.
• B)entitlement programs.
• C)devolutionary grants.
• D)reverse remunerations.

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Definitions:

Government Spending

Total government expenditures on final goods and services, including salaries of public servants, public infrastructure, and other government activities.

Multiplier

A quantitative measure that indicates the proportional amount by which aggregate output is expected to increase following an injection of public spending or investment.

Multiplier

A factor by which an initial change in spending will alter total economic output by a greater amount.

National Debt

The cumulative amount of money that a government owes to creditors, both domestic and foreign, as a result of borrowing to cover budget deficits.