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

Multiple Choice

If a "liberal" wanted to increase aggregate demand, which of the following would he or she tend to favor?

A) An increase in government spending, because it will increase the size of the public sector.
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.