Assume the Government Wants to Increase the Level of Consumption

Multiple Choice

Assume the government wants to increase the level of consumption and investment.Which of the following policies should be implemented?

A) higher investment tax credits
B) removal of investment subsidies combined with monetary restriction
C) an income tax cut combined with monetary restriction
D) an increase in government transfer payments to low income households financed by a tax increase on high income households
E) none of these