2) Transfer payments are the ________ in the government's budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 3) Personal taxes are the ________ in the government's budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 4) A government's debt is increased when it A) balances is budget. B) buys more bonds. C) runs a deficit. D) runs a surplus. 5) When a government runs a surplus A) its debt increases. B) it must raise taxes. C) its debt decreases. D) it must cut spending. 6) The amount the government owes to the public is the federal debt. 7) If tax receipts are greater than government expenditures the government is running a surplus. 8) If the government runs a surplus, then the government debt increases. 9) Transfer payments are the largest part of the U.S. government spending. 10) The government budget is balanced when tax receipts equal transfer payments. 9.4   The Economy's Influence on the Government Budget 1) During a recession, unemployment ________, tax revenue ________, and the budget deficit ________. A) rises; falls; rises B) rises; rises; falls C) falls; rises; rises D) falls; falls; rises

2) Transfer payments are the ________ in the government's budget.

A) smallest expenditure source

B) largest expenditure source

C) smallest revenue source

D) largest revenue source

3) Personal taxes are the ________ in the government's budget.

A) smallest expenditure source

B) largest expenditure source

C) smallest revenue source

D) largest revenue source

4) A government's debt is increased when it

A) balances is budget.

B) buys more bonds.

C) runs a deficit.

D) runs a surplus.

5) When a government runs a surplus

A) its debt increases.

B) it must raise taxes.

C) its debt decreases.

D) it must cut spending.

6) The amount the government owes to the public is the federal debt.

7) If tax receipts are greater than government expenditures the government is running a surplus.

8) If the government runs a surplus, then the government debt increases.

9) Transfer payments are the largest part of the U.S. government spending.

10) The government budget is balanced when tax receipts equal transfer payments.

9.4   The Economy's Influence on the Government Budget

1) During a recession, unemployment ________, tax revenue ________, and the budget deficit ________.

A) rises; falls; rises

B) rises; rises; falls

C) falls; rises; rises

D) falls; falls; rises