Multiple Choice Question

Question

During an election period, a politician may favor large tax cuts in order to quickly stimulate the economy to increase reelection hopes. This is an example of what?
Multiple choice question.

Politicians making fiscal policy decisions that may not be economically appropriate

Median vote model

Public choice theory

Politicians making fiscal policy decisions that are economically appropriate

Answer 1

The correct answer is:

Politicians making fiscal policy decisions that may not be economically appropriate

This option highlights the idea that politicians may prioritize their election chances over sound economic policy.