Multiple Choice
A strict balanced-budget rule would:
A) permit the use of fiscal policy for stabilization.
B) allow the use of tax smoothing to reduce tax distortions.
C) redistribute tax burdens across generations.
D) restrain political incompetence and opportunism.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Assume that nobody cares about the economic
Q8: Under capital budgeting, all of the following
Q9: In response to a tax cut, the
Q10: Proponents of Ricardian equivalence argue that if
Q11: Spending more than earning will always cause
Q13: Assume that the nominal interest rate is
Q14: Historically, the primary cause of increases in
Q15: If government debt is not changing, then:<br>A)
Q16: The logic of Ricardian equivalence implies that:<br>A)
Q17: According to the traditional view of government