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The Choice Between Increasing Government Spending and Cutting Taxes Often

Question 56

Multiple Choice

The choice between increasing government spending and cutting taxes often is related to


A) what an economist believes the value of both the tax multiplier and the government spending multiplier are.
B) what an economist believes the right size and scope of government might be.
C) whether an economist believes that government spending leads to complete crowding out.
D) a and b
E) all of the above

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