If a "Conservative" Wanted to Increase Aggregate Demand, Which of the Following

Multiple Choice

If a "conservative" wanted to increase aggregate demand, which of the following would he or 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.