Multiple Choice
If a "conservative" wanted to increase aggregate demand, which of the following would she tend to favor?
A) An increase in government spending, because it has a larger multiplier than tax changes.
B) A decrease in transfer payments, because it keeps the public sector small.
C) An increase in transfer payments, because it has a larger multiplier than tax changes.
D) A decrease in taxes, because it makes the public sector smaller.
Correct Answer:

Verified
Correct Answer:
Verified
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