Which item does NOT constrain federal spending?

Question

Quizplus · Accepted Answer

The mortgage interest rate does not constrain federal spending. It may affect the housing market or individual borrowing decisions, but it does not directly impact the federal budget or spending decisions. B, C, and D are all factors that can constrain federal spending. The amount of bonds the public is willing to purchase affects the government's ability to borrow money to finance its spending. The money supply can impact inflation and interest rates, which can in turn affect government borrowing costs and overall economic growth. Tax receipts are directly linked to the government's ability to collect revenue and fund its spending, so they are a crucial factor in determining how much the government can afford to spend.

Which Item Does NOT Constrain Federal Spending