Which of the following is an argument in favor of a balanced budget rule?
A)Some economists believe that rules are better than discretion.
B)Per-capita debt is small relative to lifetime income.
C)The effect of deficit spending on future generations depends in part on what the government buys.
D)Other government policies also redistribute income across generations.

Question

Quizplus · Accepted Answer

A balanced budget rule can provide a consistent framework for fiscal policy, reducing the risk of excessive debt accumulation and promoting fiscal discipline, which some economists argue is better than allowing policymakers too much discretion.

Which of the Following Is an Argument in Favor of a Balanced