The Nearly $800 Billion Stimulus Package Passed in the United

Multiple Choice

The nearly $800 billion stimulus package passed in the United States in 2009 focused more on spending than on taxes partly because

A) increased spending leads to a larger increase in GDP than does the same reduction in taxes.
B) increased spending leads to a smaller increase in GDP than does the same reduction in taxes.
C) the government tax multiplier is more than the government spending multiplier.
D) the government revenue multiplier is about the same as the government tax multiplier.