Japan Mulls New Cash Handout for Needy Households As Pandemic Drags On In 2020, Japan’s government gave ¥100,000 each to its 126 million residents to ease the effects of the Covid19 pandemic. Now the government is considering another similar program. Suppose Japan changes its stimulus payments from all cash handouts to half as cash payments and half as investment in infrastructure projects.

Which of these expenditures would have the larger effect on equilibrium expenditure, other things remaining the same?