Which of the Following Is an Argument in Favor of a Balanced

question 278

Multiple Choice

Which of the following is an argument in favor of a balanced budget rule?

• A)Some economists believe that rules are better than discretion.
• B)Per-capita debt is small relative to lifetime income.
• C)The effect of deficit spending on future generations depends in part on what the government buys.
• D)Other government policies also redistribute income across generations.

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Definitions:

Tax Base

The measure or value upon which a tax is levied.

Incidence

In economics, the allocation or distribution of a tax's economic burden between buyers and sellers.

Tax Rate Structure

The percentage of a tax base that must be paid in taxes—25 percent of income, for example.

Tax Base

The tax base is the total amount of income, property, assets, or other wealth that is subject to taxation by a taxing authority.