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The Maastricht Rules Specified Budgetary Rules Such as Meeting Deficit

Question 107

Multiple Choice

The Maastricht rules specified budgetary rules such as meeting deficit and debt targets because:


A) nations that are able to keep spending down will probably have more money left over to pay their Eurozone dues.
B) nations that are fiscally sound will not be tempted to inflate their currency to reduce the real burden of their debt.
C) if one nation spends more and taxes less, population will tend to emigrate to that nation.
D) the ECB is prohibited from lending to nations, that nation may run out of available credit.

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