1. Fiscal year 2015 began on October 1, _________. 2.Corporate taxes are the largest component of federal revenue. _________ (True/False) 3. Federal spending consists of _________ and _________. 4....

1. Fiscal year 2015 began on October 1, _________.

2.Corporate taxes are the largest component of federal revenue. _________ (True/False)

3. Federal spending consists of _________ and _________.

4. The largest category of federal spending is _________.

5. The States and Balanced Budgets. Unlike the U.S. federal government, virtually all states have requirements that they must either plan for or maintain a balanced budget.

a. Suppose the national economy experiences a recession. How will this affect the budgets of the states?

b. What actions must the states then take to balance the budget?

c. Graphically show how these actions, taken together, may destabilize the national economy.

6. _________ consists of interest payments on government debt held by the public.