Widespread Acceptance of the Keynesian Theory of Fiscal Policy

question 83

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 continual budget deficits of recent 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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Definitions:

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