Which of the Following Would Those in Favor of Increasing

question 14

Multiple Choice

Which of the following would those in favor of increasing government spending rather than decreasing taxes to prop up aggregate demand probably not agree with?

• A)Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes for increasing aggregate demand.
• B)Increased government spending on "shovel-ready" projects can be helpful to boost aggregate demand.
• C)Increases in government spending offer a greater "bang for the buck" than decreases in taxes.
• D)When the government gives a dollar in tax cuts to a household,that dollar immediately and fully adds to aggregate demand.

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