QUESTION 4

Some political parties systematically advocate small government and responsible fiscal policy when in opposition but tend to run large deficits when they become incumbents in office. Which one of the following hypotheses better explains this phenomenon?

a.Such parties do not have consistent economic policy platforms and act randomly.

b.Such parties believe that increased deficits are good for long-term growth, but their rivals are not competent to use that strategy.

c.Such parties try to reap the political benefits of increased deficits when in office, while tying the hands of the rival parties that succeed them.

d.Such parties, when in opposition, have no idea how difficult it is to keep deficits low and discover the problem only when elected to office.