Question 1
What happens to the budget deficit each year?
◦ It is added to the national debt.
◦ It becomes a tax expenditure.
◦ It results in a tax increases commensurate with the size of the deficit.
◦ It results in automatic spending cuts the following year.
Question 2
What is a consequence of incrementalism?
◦ the tendency for budgets to increase modestly from year to year
◦ income tax rates that increase incrementally as income increases
◦ laws that prohibit spending increases except in times of emergency
◦ the tendency for the national debt to increase in large increments every year
