If a "conservative" wanted to increase aggregate demand, which of the following would she tend to favor?
A)An increase in government spending, because it has a larger multiplier than tax changes.
B)A decrease in transfer payments, because it keeps the public sector small.
C)An increase in transfer payments, because it has a larger multiplier than tax changes.
D)A decrease in taxes, because it makes the public sector smaller.

Question

Quizplus · Accepted Answer

Conservatives typically favor reducing taxes to increase aggregate demand, as it allows individuals and businesses to retain more of their income, potentially leading to increased spending and investment.

If a "Conservative" Wanted to Increase Aggregate Demand, Which of the Following