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.
Correct Answer:
Verified
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