Politics and Economics Vocabulary 3 Mr. Thacker

Chapter 15 Unit 4: Taxation

Identify and/or Explain

1. Balanced budget

2. Budget surplus

3. Budget deficit

4. Inflation

5. Hyperinflation

6. Bonds

7. Treasury bills, Treasury notes, Treasury bonds

8. National debt

9. Crowding-out effect

10. Servicing the debt

11. Gramm-Rudman-Hollings Act

12. “pay-as-you-go”

Questions

1. Explain the difference between deficit and debt. (3)

2. List and explain the two problems of a national debt. (6)