When considering activist fiscal policy in developing countries, these governments:
A)usually have greater flexibility in determining expenditures than governments in developed countries.
B)have about the same degree of flexibility in determining expenditures as governments in developed countries.
C)usually have less flexibility in determining expenditures than governments in developed countries.
D)do not have to worry about their expenditures because they have no taxes with which to finance them.

Question

Quizplus · Accepted Answer

Developing countries often have less flexibility in determining expenditures compared to developed countries due to limited access to financial markets, higher debt levels, and reliance on external financing, which can impose constraints on their fiscal policy choices.

When Considering Activist Fiscal Policy in Developing Countries, These Governments