Which of the Following Best Explains the Political Attractiveness of Debt

question 39

Multiple Choice

Which of the following best explains the political attractiveness of debt financing relative to taxation?

• A) Debt financing pushes the visible cost of government into the future.
• B) Debt financing exposes the current costs of government programs; taxes do not.
• C) Debt financing reduces the attractiveness of special-interest spending.
• D) Taxes allow politicians to supply voters with immediate benefits without having to impose a visible cost.

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Definitions:

Automatic Processing

Cognitive operations that occur without conscious thought, often quickly and effortlessly, such as recognizing faces or understanding words.

Incidental Information

Information that is not essential or central but may be encountered or learned by chance.

Sensory Memory

The shortest-term element of memory, responsible for holding sensory information for a few seconds or less.

Photographic Memory

A rare ability to recall images, sounds, or objects in great detail after only a few instances of exposure, without using mnemonics.