Which statement(s) is/are TRUE? I. Politicians are more likely to use expansionary policies financed by deficit spending rather than taxation.
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

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I. Politicians often prefer expansionary policies financed by deficit spending to avoid the immediate political costs of raising taxes. II is incorrect because public choice economists typically argue that politicians favor policies that benefit them politically, which often involves deficit spending rather than maintaining a balanced budget. III is incorrect because James Buchanan argued the opposite: using deficits to finance expansionary fiscal policies shifts the burden of government costs from present to future generations.

Which Statement(s) Is/are TRUE? I