Multiple Choice
Which of the following would those in favor of increasing government spending rather than decreasing taxes to prop up aggregate demand probably not agree with?
A) Traditional Keynesian analysis indicates that increases in government purchases are a more potent tool than decreases in taxes for increasing aggregate demand.
B) Increased government spending on "shovel-ready" projects can be helpful to boost aggregate demand.
C) Increases in government spending offer a greater "bang for the buck" than decreases in taxes.
D) When the government gives a dollar in tax cuts to a household,that dollar immediately and fully adds to aggregate demand.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: In which cases were tax cuts followed
Q6: Suppose a tax cut affects aggregate demand
Q7: Which of the following is true of
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Q10: Which of the following is correct?<br>A)Well designed
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Q12: Suppose a tax cut affects aggregate demand
Q13: Which of the following can tax cuts
Q15: Which of the following can tax cuts