Multiple Choice
From a public choice viewpoint, the persistent budget deficits of recent decades are
A) surprising, because politicians have a strong incentive to balance the government's budget.
B) an expected result, because the political incentive structure makes it attractive for politicians to levy taxes rather than spend on current programs.
C) surprising, because politicians have a strong incentive to run budget surpluses and thereby indicate that their actions have generated a profit.
D) an expected result, because the political incentive structure makes it attractive for politicians to spend on current programs rather than levy taxes.
Correct Answer:

Verified
Correct Answer:
Verified
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