Chapter . White House, House Republicans Face Off Over Competing Deficit Reduction Plans

The 2013 “Fiscal Cliff” involved ____ in U.S. Government spending and _____ in taxes.

no change; an increase

a decrease; no change

a decrease; an increase

an increase; no change

According to the video, President Obama’s budget proposals included _____, while Congressional Republicans proposed _____.

a decrease in taxes on low-income individuals; lowering the Medicare eligibility age

lowering the Medicare eligibility age; a decrease in taxes on high-income individuals

raising the Medicare eligibility age; an increase in taxes on low-income individuals

an increase in taxes on high-income individuals; raising the Medicare eligibility age

Which of these is a U.S. entitlement program?

Education spending.

Interest payments on the U.S. debt.

Social Security.

Debt payments.

According to Erskine Bowles, one negative effect of the “Fiscal Cliff” would be that:

GDP growth would slow by 4%.

Inflation would rise by 9%.

GDP growth would slow by 9%.

Inflation would rise by 4%.

According to the video, the main goal of government spending cuts and tax increases is to:

Prevent Social Security from going bankrupt.

Increase GDP growth and avoid recession.

Protect the United States’ credit rating.

Reduce the U.S. budget deficit.