Can someone please help me with the following Global Policy - American Government questions.  Also please tell me briefly why you choose this option 1.The U.S. economy is influenced by - a....

Can someone please help me with the following Global Policy - American Government questions.  Also please tell me briefly why you choose this option

1.The U.S. economy is influenced by - a. individual investors, consumers, and business people b. the Council of Economic Advisers and the Federal Reserve Board c. the president or d. all of the above

2.When the federal government engages in deficit financing, it - a. appropriates funds to enable states to balance their budgets b. spends money to reduce the national debt c. spends money on needless or wasteful projects or d. spends more money in a fiscal year than it takes in

3.The Federal Reserve Board affects the performance of the American economy by all of the following EXCEPT a. changing the amount of cash that member banks must keep on deposit b. changing the interest rate at which member banks borrow from the Fed c. buying and selling government securities or d. changing the federal debt ceiling

4.The president's responsibility to prepare the budget a. derives from Article II of the Confederation b. was granted by Congress in 1921 c. is not a significant source of power d. has evolved informally, with no statutory basis

5.The House Ways and Means Committee and the Senate Finance Committee are _____ committees - a. authorization b. tax c. appropriations or d. select

6.The role of appropriations committees is to - a. decide which programs will be funded b. oversee implementation of the Gramm-Rudman-Hollings Act c. authorize spending in particular legislative areas or d. offer a comprehensive budget-review process

Expert Answers
pohnpei397 eNotes educator| Certified Educator

Question 1:  The best answer is D.  All of these groups or individuals can have some influence over the economy of the United States.  The greatest influence on the economy is held by the people.  The consumers, businesspeople, and investors are the ones who do the most to determine what will happen in the economy.  However, the other groups can have some small effects as well.  For example, executive orders from the president can affect the economy to some degree.  Therefore, D is a better answer than A.

Question 2:  The best answer is D.  Deficit spending is defined as spending more in a given year than the government takes in in tax revenue.  Sometimes this spending is wasteful, but not always, so Option C is wrong.  Deficit spending adds to the debt rather than decreasing it, so Option B is wrong.  The US government does not necessarily help the states balance their budgets, so A is wrong.  D is, by definition, correct.

Question 3: Once again, the answer is D.  Options A, B, and C are the three main tools of monetary policy that the Fed has at its disposal.  Option D is not in the Fed’s control.  The Congress has to agree to increase the debt ceiling.  This is why we have had incidents recently where Republicans in Congress have threatened to refuse to raise the ceiling.

Question 4:  The best answer to this one is Option B.  I assume that Option A is supposed to refer to the Constitution and not the “Confederation,” but even so, Article II of the Constitution does not specifically give the president power to make a budget.  The Budget and Accounting Act of 1921 did give the president budget power.  This makes Option B correct and Option D wrong.

Question 5:  The right answer is Option B.  This is correct because these are both committees that have to do with writing tax law, not with appropriating funds.

Question 6: The best answer is Option A.  This is not a great answer, but it is the best choice.  It is not a great answer because the appropriations committees are not supposed to refuse to fund programs that have been authorized.  However, it is better than Option C because appropriations committees are definitely not the ones that authorize the spending.  The other committees authorize spending up to a certain limit and then the appropriations committees decide how much will actually be spent.  Thus, A is the better answer.