Federal Budget

Federal Budget Questions and Answers

Which of the following is not an example of how to create a balanced budget? a. Increase revenue by raising taxes c. Cut spending on government organizations such as the United States Postal Service or NASA. b. Increase government programs such as unemployment insurance d. Cut government subsidies for industries such as technology or agriculture.

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What are the strengths and weaknesses of federal government budgeting?

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Explain the differences among an annually balanced budget, a cyclically balanced budget, and functional finance. 

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What problems are associated with the U.S. federal budget process, and what solutions have been offered to these problems?

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Why does the budget require a forecast of the economy? 

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Is it possible for U.S. federal budget deficits to crowd out  investment spending in other countries? For example, how could German or British investment be hurt by large U.S. budget deficits?

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What problems are likely to occur if the federal government were to employ the functional finance budgetary philosophy?

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When we talk about reducing government spending in order to reduce debt, isn't this what we should be talking about instead of reducing Medicare or Social Security?  So why aren't we able to do that?

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