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Explore how the federal government collects taxes, borrows money, and creates a budget to run the nation. Learn about government spending types, budget process, fiscal & monetary policies' impact on the economy.
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Section 3 Financing Government Chapter 7 - The Executive Branch at Work
Financing Government Main Idea By collecting taxes and borrowing money, the federal government is able to generate the funds it needs to run the nation. The government then assigns these funds to create a federal budget for the upcoming year.
Financing Government • Reading Focus • How does the federal government pay for its operations? • What are the two types of government spending? • How does the federal budget process work? • How does fiscal policy affect the nation’s economy? • How does monetary policy affect the nation’s economy?