The term "fiscal illusion" refers to
A) households not grasping the higher future taxes from debt-financed stimulus spending
B) households not grasping the higher future inflation from money-financed stimulus
C) households not grasping the higher future debt from increasing entitlement spending
D) households not grasping the higher future inflation from debt-financed stimulus spending
Answer: A) households not grasping the higher future taxes from debt-financed stimulus spending
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Refer to Table 2.3. Assume that 2010 is the base year. Real GDP in 2010 is
A) $490.00. B) $580.00. C) $671.00. D) $812.00.
As conflicts between principles of taxation are normative in nature, _____
a. agreement is easily reached b. disagreement cannot easily be resolved c. the benefit principle should be the proper default d. the Pareto criteria should be used instead
When quantity supplied is not very responsive to a change in price, supply is
A) elastic. B) unit-elastic. C) inelastic. D) income sensitive.
In international trade, an infant industry is one:
a. that protects firms that produce products for infants. b. with a large number of very small firms. c. in which the firms are experiencing very small profits. d. in the early stages of its development.