The persistence of budget deficits during the last several decades is not surprising because politicians will find
a. budget surpluses more attractive than budget deficits.
b. tax increases more attractive than increases in government expenditures.
c. budget deficits more attractive than budget surpluses.
d. reductions in government expenditures more attractive than tax reductions.
C
You might also like to view...
Your textbook uses supply and demand curves together to illustrate
A) the level of output needed by individuals. B) the level of output needed by society. C) how economists are necessary to make markets to work effectively. D) how market prices play a key role in coordinating the plans of sellers and buyers. E) all of the above.
In order for a voluntary agreement to be reached in general, transaction costs should be
A) infinite. B) high relative to expected marginal benefits of the agreement. C) low relative to expected marginal benefits of the agreement. D) determined by the Environmental Protection Agency.