In agreement with pohnpei397; the answer is D. This is
evidenced by the fact that the other three options all describe methods and philosophies
about economics, rather than specific economic conditions or circumstances, which is
what the question asks.
It's entirely possible that
Reaganomics or any other economic plan could lead to government spending exceeding its
income, but this is not necessary, guaranteed nor inevitable in any particular model. We
might also state that the analysis of a budget exceeding its income to be a post hoc
("after-the-fact") analysis which cannot be made with 100% accuracy before that budget's
timeframe has passed, i.e. we can't say we've exceeded the budget and run up a deficit
until we know that we won't get any more money before the books
close.
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