Suppose an elected official wishes to introduce a new government program.Under a PAYGO rule,this new program would be adopted only if
A)the budget deficit is reduced by the same amount as the costs of the new program.
B)the budget deficit is reduced by half the amount of the costs of the new program.
C)the new program does not result in an increase in the current or future budget deficit.
D)none of the above

Question

Quizplus · Accepted Answer

PAYGO (Pay-As-You-Go) is a budgeting rule that requires any new legislation that increases government spending or reduces revenue to be offset by budget cuts or revenue increases elsewhere. Under a PAYGO rule, the new program would only be adopted if it does not result in an increase in the current or future budget deficit. Therefore, choice C is the correct answer.

Suppose an Elected Official Wishes to Introduce a New Government