The Argument That an Increase in Government Expenditures Will Have

question 228

Multiple Choice

The argument that an increase in government expenditures will have a larger impact on aggregate demand than tax cuts is based on the idea that

• A)tax cuts have no multiplier affect.
• B)people will save part of a tax cut.
• C)an increase in consumption expenditures has a smaller effect on real GDP than an equal increase in government expenditures.
• D)None of the above is correct.

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Definitions:

David Resnik

A bioethicist known for his work in research ethics, including issues related to scientific misconduct and the ethical design of clinical trials.

Research Funding

Financial resources provided to support the investigation and study of specific subjects or projects.

Cosmopolitan View

A perspective or philosophy that considers all humans as part of a single global community, with a focus on moral and ethical standards transcending individual societies.

Distributive Justice

Concerns the equitable allocation of goods, resources, and burdens among individuals in a society.