Expenditure Rules and Fiscal Policies
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Questions and Answers

What is the main focus of expenditure rules?

  • Addressing revenue pressures (correct)
  • Controlling monetary policy
  • Monitoring public debt
  • Promoting sound fiscal policies

What is one feature of expenditure rules mentioned in the text?

  • They are prone to political manipulation
  • They are complex and difficult to understand
  • They are transparent and easy to monitor (correct)
  • They have no impact on annual budget formulation

How are expenditure rules related to the annual budget formulation?

  • They have no relationship with the annual budget
  • They set legally binding appropriations for the budget (correct)
  • They lead to excessive deficits in the budget
  • They are not enforceable in the annual budget

According to the main findings, what is compliance with expenditure rules generally higher than?

<p>Compliance with other types of rules such as budget balance or debt rules (C)</p> Signup and view all the answers

What is a potential impact of expenditure rules on spending prioritization?

<p>They can result in greater efficiency in spending (A)</p> Signup and view all the answers

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