One argument in favour of tax cuts over spending on infrastructure to increase production is that:
A) tax cuts increase the MPC by a larger amount than spending on infrastructure.
B) tax cuts increase planned spending,but spending on infrastructure offsets private spending.
C) the tax multiplier is larger than the government spending multiplier.
D) it takes longer to implement spending on infrastructure than to implement tax cuts.
Correct Answer:
Verified
Q23: In the Keynesian-cross model, if government purchases
Q38: In the Keynesian-cross model, if taxes are
Q39: The Keynesian-cross analysis assumes planned investment:
A) is
Q47: An interpretation of why the IS curve
Q49: In the Keynesian-cross model, a decrease in
Q50: Changes in fiscal policy shift the:
A) LM
Q52: An increase in taxes shifts the IS
Q54: An increase in the interest rate:
A) reduces
Q97: A given increase in taxes shifts the
Q114: If investment does not depend on the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents