Question

The public choice perspective on deficit spending suggests that deficit spending

is the result of politicians' concern for the economy's long‑term sucess.

is primarily funded by printing money to induce inflation.

shifts the costs of programs primarily onto present‑day taxpayers.

shifts the costs of programs away from current taxpayers and onto future generations.

Answer 1

Answer:

d. shifts the costs of programs away from current taxpayers and onto future generations.

Explanation:

Since public choice theory assumes that politicians are rational, self‑interested economic actors, deficit spending is seen as a way to hold office by promoting spending projects. As the costs of deficit spending are shifted toward future generations of taxpayers, deficit spending is more appealing in the present, as the up‑front costs of projects seem lower.

Deficit spending, in its most basic form, occurs when a government's expenditures exceed its revenues over a fiscal period, resulting in a budget deficit.