Answered: Spending funds obtained by borrowing…

Spending funds obtained by borrowing instead of taxation. A. Merit Good B. Zero based Budgeting C. Deficit Spending D. Fiscal Policy

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 13SCQ: What is the main advantage of automatic stabilizers over discretionary fiscal policy?

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Question

Spending funds obtained by borrowing instead of taxation.

A. Merit Good
B. Zero based Budgeting
C. Deficit Spending
D. Fiscal Policy

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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