Game Theory Analysis of Macro Policy Suggests That as Voters

question 10

Multiple Choice

Game theory analysis of macro policy suggests that as voters become more short- sighted:

• A) policy makers will be tempted to raise taxes.
• B) policy makers will be forced to cut spending.
• C) policy makers will adopt policies today to achieve balanced budgets in the future.
• D) policy makers will be tempted to cut taxes.
• E) policy makers will be forced to balance the budget.

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Definitions:

Compound

A chemical entity that is formed by the combination of two or more elements in a specific proportion.

Functional Group

A specific group of atoms within a molecule that is responsible for the characteristic chemical reactions of that molecule.

R-OH

This is a general formula representing alcohols where R represents the alkyl group and -OH represents the hydroxyl functional group.

Alcohol

Any organic compound where the hydroxyl functional group (–OH) is bound to a carbon atom.