When there are no constitutional constraints on democracy, politicians will

A) find it advantageous to provide income transfers and other favors to interest groups in exchange for votes and political contributions, and this will eventually lead to budget deficits, high taxes, and economic stagnation.
B) impose high taxes that will lead to budget surpluses, which will eventually undermine economic progress.
C) be reluctant to run budget deficits during a recession and this failure will lead to economic instability and stagnation.
D) be reluctant to impose regulations and eventually unbridled market competition will undermine economic progress.


A) find it advantageous to provide income transfers and other favors to interest groups in exchange for votes and political contributions, and this will eventually lead to budget deficits, high taxes, and economic stagnation.

Economics

You might also like to view...

Refer to the graph below, which shows the effect of ________ on the home economy

A) foreign inflation B) domestic inflation C) foreign deflation D) domestic recession E) foreign recession

Economics

It is __________ in the United States for a bank to require a business owner to put up some of his personal assets as "__________" collateral for a loan to his business

A) legal; inside B) legal; outside C) illegal; inside D) illegal; outside

Economics

A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $2.00. If the firm is perfectly competitive and the market price of its product is $5, which of the following is true?

A) The firm should exactly triple output in each of the plants to maximize profit. B) The firm is not producing the profit-maximizing total output. C) The firm is producing the profit-maximizing total output. D) The firm should increase output at each of the plants to maximize profit.

Economics

Net capital outflow measures the imbalance between the amount of

a. foreign assets held by domestic residents and domestic assets held by foreign residents. b. foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners. c. foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners. d. None of the above is correct.

Economics