Problem
Behavioral economics. The issue of fiscal illusion, introduced in Chapter 4, is particularly important in deficit financing, because citizens will be less aware of the cost of public services if the cost is postponed to some indefinite future time. How would you devise a set of rules that balances the concerns of overspending with the need for flexibility during economic downturns at the central government level?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.