In developing countries, government expenditure levels are most closely related to:
A)what is necessary to achieve long-term macroeconomic objectives.
B)what activist fiscal policy is necessary to achieve potential output.
C)considerations about what will keep the existing government in power.
D)what will bring about regime change.

Question

Quizplus · Accepted Answer

In developing countries, government expenditure levels are often closely related to considerations about what will keep the existing government in power. This is because political stability and the maintenance of power can be significant factors influencing government decisions on where and how to allocate resources.

In Developing Countries, Government Expenditure Levels Are Most Closely Related