Question 1
Other things equal, ________ interest rates increase the government deficit because of ________ government interest payments.
◦ high; lower
◦ high; higher
◦ low; lower
◦ low; higher
Question 2
The legislative intent of the Gramm-Rudman-Hollings Act was to
◦ reduce the federal deficit by a set amount each year.
◦ increase federal interstate highway expenditures.
◦ increase defense-related expenditures.
◦ decrease personal and corporate taxes.