The government wants to increase its spending by $1 billion to stimulate the economy and is counting on the government spending multiplier to help. Taking into account direct expenditure offset effects, what is its best spending option?
A) A new cruise missile for the military
B) Expanding the school lunch program
C) Constructing more low income housing
D) Providing textbooks for college students

Question

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The Answer of The government wants to increase its spending by $1 billion to stimulate the economy and is counting on the government spending multiplier to help. Taking into account direct expenditure offset effects, what is its best spending option?
A) A new cruise missile for the military
B) Expanding the school lunch program
C) Constructing more low income housing
D) Providing textbooks for college students

The Government Wants to Increase Its Spending by $1 Billion