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As Compared to Government Spending, Spending Generated by a Tax

Question 44

Multiple Choice

As compared to government spending, spending generated by a tax cut is likely to affect aggregate demand


A) more quickly and more likely to be spent on projects with little benefit.
B) more quickly but less likely to be spent on projects with little benefit.
C) less quickly but more likely to be spent on projects with little benefit.
D) less quickly and more likely to be spent on projects with little benefit.

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