Widespread Acceptance of the Keynesian Theory of Fiscal Policy

question 127

Multiple Choice

Widespread acceptance of the Keynesian theory of fiscal policy

• A) caused most economists to reject the public choice view of budget deficits.
• B) relaxed the political pressure to balance the budget and, hence, paved the way for the persistent budget deficits of the last five decades.
• C) was based on the view that continual budget deficits would help stabilize the economy.
• D) increased the pressure for a constitutional amendment mandating that the federal government balance its budget.

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