Answer:
a. $1,000 of income for the Human Fund for owning a $100,000 savings bond - This is an example of the debt interest in the budget.
b. Food stamps received by the Jones family - These are mandatory that has to be spent by the government.
c. Purchase of F-16 fighter planes by the U.S. government - Purchasing F-16 is discretionary.
d. An increase in the salary of researchers at the National Institutes of Health - Increase in the salary is discretionary expenditure by the government.
e. Government aid to help victims of drought in east Africa - This will be discretionary.
Definition of the categories of US government budget
Mandatory spending is spending required by statutory criteria, it is not authorized annually
Discretionary spending is spending that must be authorized annually and appropriated by the House and Senate.
Interest on debt is the cost incurred by an entity for borrowed funds
Plant-like protists, such as algae produce their own food bur are unable to move on their own.
Answer:
The answer is option B) The Federal government's budget balance as a percent of GDP was lower than predicted by the trendline (that is, the deficit is bigger) ), so fiscal policy was more expansionary than usual.
Explanation:
The annual budget deficit increased from $585 billion (3.2% GDP) in 2016 to $984 billion (4.7% GDP) in 2019.
Contrary to fiscal predictions, The U.S. fiscal deficit increased by $1 trillion in 2019, the first time it has passed that level in a calendar year since 2012.
A situation like this necessitates an expansionary fiscal policy.
Expansionary Fiscal Policy is a tool used by government to increase disposable income by reducing tax and increasing government expenditure.
This will lead to an increase in aggregate demand and contributing to drawing down of budget surpluses.