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 think that the government is too large and inefficient would prefer a tax cut instead of an increase in government spending. Therefore, the best choice for them would be a $40 billion tax cut.

Which of the Following Expansionary Fiscal Policy Changes Would Be