To Force Politicians to Judge Whether Government Spending Is Worth

question 19

Multiple Choice

To force politicians to judge whether government spending is worth the costs, some economists have argued for:

• A) a balanced-budget rule for fiscal policy.
• B) a constant money-growth rule for monetary policy.
• C) avoiding the assumption of any contingent liabilities.
• D) the application of Ricardian equivalence.

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Definitions:

Price of Steel

The cost per unit of steel, which can fluctuate based on market demand, supply conditions, and raw material prices.

Ford

an American multinational automaker known for revolutionizing assembly line production for automobiles.

Factor of Production

A Factor of Production is an input used in the production of goods and services, such as land, labor, capital, and entrepreneurship.

Demand

Refers to the quantity of a product or service that consumers are willing and able to purchase at various prices over a given period of time.