Why is the tax multiplier always less than the spending multiplier? Choose 1 answer: Choose 1 answer: (Choice A) Changes in government spending affect aggregate demand directly but changes in taxes affect aggregate demand indirectly. A Changes in government spending affect aggregate demand directly but changes in taxes affect aggregate demand indirectly. (Choice B) An increase in government spending leads to a smaller increase in output than a tax cut B An increase in government spending leads to a smaller increase in output than a tax cut (Choice C) When government spending increases, the deficit increases C When government spending increases, the deficit increases (Choice D) Because changes in taxes affect the money supply but changes in government spending do not D Because changes in taxes affect the money supply but changes in government spending do not (Choice E) Changes in government spending affect aggregate supply directly, but changes in taxes affect aggregate demand directly. E Changes in government spending affect aggregate supply directly, but changes in taxes affect aggregate demand directly