A newly appointed government in the United States requests Congress to raise the amount of money that the government can borrow. This borrowed money is intended to be used to cover the costs of the major policies that it plans to implement. In this scenario, the government has asked the Congress to hike its _____.
A)discount rate
B)fiscal cliff
C)debt ceiling
D)down payment

Question

Quizplus · Accepted Answer

The government has asked Congress to raise the amount of money it can borrow, which refers to the debt ceiling. The discount rate is set by the Federal Reserve and is not directly related to government borrowing. The fiscal cliff refers to a set of tax increases and spending cuts that would automatically go into effect if Congress failed to reach an agreement on budget issues, which is not applicable in this scenario. Down payment refers to money paid upfront when buying a large ticket item and is not related to government borrowing.

A Newly Appointed Government in the United States Requests Congress