What is one consequence of Congress decreasing spending?

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Prepare for the Personal Finance Module 3 DBA Test with interactive flashcards and multiple choice questions. Each question includes hints and detailed explanations to help you succeed. Start your journey to financial mastery today!

When Congress decreases spending, one significant consequence is the reduction in government services. This is because government spending is a primary source of funding for various programs and services that citizens rely on, such as education, healthcare, infrastructure, and public safety. When spending cuts are implemented, it typically leads to scaled-back services, layoffs of government employees, or the elimination of programs that support communities.

For instance, if Congress decides to withdraw funding from certain social welfare programs, individuals and families who depend on those services may find themselves without support. Similarly, cuts in spending on public infrastructure can lead to delayed repairs or maintenance of roads and bridges, adversely affecting transportation and safety. Consequently, a decrease in government spending can have a direct and tangible impact on the availability and quality of services provided to the public, highlighting the relationship between fiscal policy and everyday citizen life.

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