Public choice analysis explains that
A) politicians have strong incentives to favor deficit finance over tax finance.
B) policy makers believe the budget should be balanced except in times of war.
C) the legislator who is a spending "watch dog" can save her constituents a substantial amount of tax money.
D) given the way Congress operates, the apparent popularity of deficit financing is surprising.

Question

Quizplus · Accepted Answer

Public choice analysis suggests that politicians have a self-interest in favoring deficit finance over tax finance. This is because deficit finance allows politicians to spend more money without raising taxes, making them more popular with their constituents.

Public Choice Analysis Explains That