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Which of the Two Fiscal Stimulus Tools Will Ultimately Have

Question 100

Multiple Choice

Which of the two fiscal stimulus tools will ultimately have the same impact on aggregate spending?


A) $100 billion tax cut and $100 billion increase in government spending.
B) $100 billion increase in government spending and $100 billion increase in transfer payments.
C) $100 billion increase in transfer payments and $100 billion in tax cuts.
D) All of the choices are correct.

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