Multiple Choice
Which of the following best explains the political attractiveness of debt financing relative to taxation?
A) Debt financing pushes the visible cost of government into the future.
B) Debt financing exposes the current costs of government programs; taxes do not.
C) Debt financing reduces the attractiveness of special-interest spending.
D) Taxes allow politicians to supply voters with immediate benefits without having to impose a visible cost.
Correct Answer:
Verified
Correct Answer:
Verified
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