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QUESTIONS FOR DISCUSSION

Major Expenditure Categories for Federal Government

Budget category	Federal spending,
	2001 ($, billion)
Social security	426
Health care and Medicare	387
National defense	291
Income security	260
Interest on public debt	208
Natural resources and	25
environment
International affairs	20

Source: Office of Management and Budget, Budget of the United States Government, Fiscal Year 2001.

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7.“Lincoln freed the slaves. With one pen stroke he destroyed much of the capital the South had accumulated over the years.” Comment.

8.The table opposite shows some of the major expenditures of the federal government. Explain how each one relates to the economic role of government.