Widespread Acceptance of the Keynesian Theory of Fiscal Policy
Widespread acceptance of the Keynesian theory of fiscal policy
A)caused most economists to reject the public choice view of budget deficits.
B)relaxed the political pressure to balance the budget and,hence,paved the way for the persistent budget deficits of the last five decades.
C)was based on the view that continual budget deficits would help stabilize the economy.
D)increased the pressure for a constitutional amendment mandating that the federal government balance its budget.
Public choice analysis explains that
A)politicians have strong incentives to favor deficit finance over tax finance.
B)policy makers believe the budget should be balanced except in times of war.
C)the legislator who is a spending "watch dog" can save her constituents a substantial amount of tax money.
D)given the way Congress operates,the apparent popularity of deficit financing is surprising.
Since 1960,there have been how many years of budget surplus?
Sizeable budget deficits can be expected in the years ahead because
A)the retirement of the baby boom generation will soon begin to push expenditures on both Social Security and Medicare upward.
B)the political incentive structure encourages politicians to spend more revenue than they are willing to tax.
C)both a and b are true.
D)both a and b are false.Budget surpluses can be expected in the years ahead.