Historically, Keynesian Economists Have Argued That Government Spending Will Stimulate

Multiple Choice

Historically, Keynesian economists have argued that government spending will stimulate aggregate demand more than tax cuts because

A) government spending will stimulate aggregate demand more quickly than a tax cut.
B) there are fewer adverse side effects to an increase in government spending.
C) all of the spending will add to aggregate demand, but a portion of the tax cut will be saved.
D) an increase in government spending can quickly be reversed once the economy has recovered.