The size of the multiplier effect for tax and transfer changes is not as big as for government spending.

Name: The size of the multiplier effect for tax and transfer changes is not as big as for government spending.
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This is because changes in government spending directly impact aggregate demand while tax and transfer changes only indirectly impact it. Additionally, individuals may choose to save or pay off debt with extra income from a tax cut or transfer payment, rather than immediately spending it.

The Size of the Multiplier Effect for Tax and Transfer