Which of the following statements is (are) true? I. Politicians are more likely to use expansionary policies financed by deficit spending.
II) A public choice economist would argue that politicians are more likely to develop expansionary fiscal policy that maintains a balanced budget.
III) James Buchanan argued that using deficits to finance expansionary fiscal policies shifts government costs from future generations to present generations.

Question

Quizplus · Accepted Answer

Politicians often favor expansionary policies financed by deficit spending to stimulate the economy and gain voter support, despite potential long-term fiscal consequences. Public choice economists, like James Buchanan, argue that such policies shift the financial burden to future generations, not maintaining a balanced budget.

Which of the Following Statements Is (Are) True? I