In 2011

question 73

Multiple Choice

In 2011

• A)the House of Representatives dramatically increased the number of earmarks in its spending bills, while the Senate dramatically decreased the number of earmarks in its spending bills.
• B)the Senate dramatically increased the number of earmarks in its spending bills, while the House of Representatives dramatically decreased the number of earmarks in its spending bills.
• C)both the House of Representatives and the Senate dramatically increased the number of earmarks in their spending bills.
• D)the House and the Senate agreed to a two-year moratorium on earmarks in spending bills.

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Definitions:

Debt Crisis

An economic crisis in which government debt has risen so high that the government is unable to borrow any more money due to people losing faith in the government’s ability to repay. Leads to either massive spending cuts or large tax increases, either of which will likely plunge the economy into a recession.

Fiscal Stimulus

Government policy aimed at encouraging economic growth through increased public spending or tax reductions, aiming to raise aggregate demand.

Willing Lenders

Individuals or institutions that are prepared to provide loans or financing to others, expecting to earn interest or receive financial returns.

Earmarks

Narrow, specially designated spending authorizations placed in broad legislation by senators and representatives for the purpose of providing benefits to firms and organizations within their constituencies. Earmarked projects are exempt from competitive bidding and normal evaluation procedures.