Which of the following expansionary fiscal policy changes would be most favored by those economists who think that the government is too large and inefficient?
A)a $40 billion increase in government spending
B)a $20 billion tax cut and $20 billion increase in government spending
C)a $10 billion tax cut and $30 billion increase in government spending
D)a $40 billion tax cut

Question

Quizplus · Accepted Answer

Economists who believe the government is too large and inefficient would prefer a tax cut, as it reduces government involvement and allows individuals to retain more of their income, potentially leading to more efficient allocation of resources.

Which of the Following Expansionary Fiscal Policy Changes Would Be