Why Have Politicians Always Favored Using Subsidies to Promote Certain

question 92

Multiple Choice

Why have politicians always favored using subsidies to promote certain economic activities?

• A)They can be treated as benefits that can be widely spread in response to many demands.
• B)They are generally cheaper than other forms of government support.
• C)Recipients are always required to pay back the subsidies.
• D)Congress does not have to pass legislation in order to provide subsidies.

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Definitions:

U.S. Dollar

The official currency of the United States, widely used as a benchmark in international financial transactions.

Domestic Investment

Refers to the total capital investment in an economy by its residents and businesses, excluding investments in foreign assets.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners in an economy.

Government Budget Deficit

The financial situation where the government's expenditures exceed its revenues over a specified period, typically a fiscal year.