Of the following fiscal programs,which has the smallest effect,per dollar,on aggregate demand?
A)defense spending
B)road construction
C)grants for scientific research and development
D)Social Security
E)government purchases of labor

Question

Quizplus · Accepted Answer

Social Security has the smallest effect per dollar on aggregate demand because it mostly involves transfers of income from one group to another rather than direct government spending on goods and services that stimulate economic activity.

Of the Following Fiscal Programs,which Has the Smallest Effect,per Dollar,on