Question
Based on the Keynesian model, one reason to support government spending increases over tax cuts as measures to increase output is that: A. increases in
A. increases in government spending increase planned spending, but tax cuts reduce planned spending.
B. government spending increases the MPC more than tax cuts.
C. government-spending increases do not lead to unplanned changes in inventories, but tax cuts do.
D. the government-spending multiplier is larger than the tax multiplier.
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Principles Of Economics
Authors: OpenStax
2nd Edition
1506699863, 978-1506699868
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