Question: Federal debt

Answer: total amount the government owes to purchasers of government securities, like Treasury bonds

Question: Fiscal policy

Answer: government use of taxing and spending to meet economic goals; Fiscal policy is a tool of the federal government through the legislative and budget process.

Question: The Federal Budget

Answer: plan or record of income and expenses each year. The combination of yearly tax revenue figures and spending figures result in the government’s yearly budget

Question: Budget Surplus

Answer: When a government has higher tax revenues than it spends, there is a surplus of funds.

Question: Budget Defecit

Answer: If the government spends more than it collects, then there is a deficit; aka “debt”.