The Maastricht Rules Specified Budgetary Rules Such as Meeting Deficit

question 124

Multiple Choice

The Maastricht rules specified budgetary rules such as meeting deficit and debt targets because:

• A) nations that are able to keep spending down will probably have more money left over to pay their Eurozone dues.
• B) nations that are fiscally sound will not be tempted to inflate their currency to reduce the real burden of their debt.
• C) if one nation spends more and taxes less, population will tend to emigrate to that nation.
• D) the ECB is prohibited from lending to nations, that nation may run out of available credit.