Historically, Keynesian Economists Have Argued That Government Spending Will Stimulate

question 112

Multiple Choice

Historically, Keynesian economists have argued that government spending will stimulate aggregate demand more than tax cuts because

• A) government spending will stimulate aggregate demand more quickly than a tax cut.
• B) there are fewer adverse side effects to an increase in government spending.
• C) all of the spending will add to aggregate demand, but a portion of the tax cut will be saved.
• D) an increase in government spending can quickly be reversed once the economy has recovered.

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