The Three Largest Categories of Spending by the Federal Government

question 98

Multiple Choice

The three largest categories of spending by the Federal government in order from first to third would be

• A)income security,net interest,and national defense
• B)national defense,net interest,and income security
• C)income security,health,and national defense
• D)health,income security,and national defense

---

Definitions:

Interest-Rate Effect

The impact that changing interest rates have on consumer spending and capital investment in the economy.

Exchange-Rate Effect

The impact of a change in the relative value of a currency on the economy, particularly on foreign exchange rates and international trade.

Monetary Policy

The process by which a central authority, typically a country's central bank, controls the supply of money in the economy, often targeting an inflation rate or interest rate to ensure economic stability and growth.

Fiscal Policy

Fiscal policy involves government adjustments to its spending levels and tax rates to influence a nation's economy, aiming to stimulate growth or curb inflation.