Federal Government--- Where the Money Goes (cents per dollar) B С D E F G H 1
A
J
K
Universal
Healthcare
Education
45
43
41
38
35
31
27
22
16
9
0
0
5
10
15
20
25
30
35
40
45
50
*Rules***
► For each dollar the federal government takes in, it has spending discretion only in the two areas shown
above: all other expenditures are fixed.
► As we switch from one combination to another, any increase in total spending must be offset by
increasing taxation. Any decrease may result in tax reduction,
1. What would the consequences be for a country that decided on Combination A? Combination K?
2. Is either set of combinations really desirable? Please justify your rationale.