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As Compared to Government Spending, a Tax Cut Is Likely

Question 63

Multiple Choice

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


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

Correct Answer:

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