Multiple Choice
Based on the Keynesian model,one reason to support spending increases over tax cuts as measures to increase output is that:
A) government spending increases the MPC more than tax cuts.
B) the government-spending multiplier is larger than the tax multiplier.
C) government-spending increases do not lead to unplanned changes in inventories,but tax cuts do.
D) increases in government spending increase planned spending,but tax cuts reduce planned spending.
Correct Answer:

Verified
Correct Answer:
Verified
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