If a "liberal" wanted to increase aggregate demand, which of the following would she tend to favor?
A)An increase in government spending, because it will increase the size of the public sector.
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

Liberals typically favor increasing government spending to boost aggregate demand, as it directly injects money into the economy and can lead to job creation and economic growth.

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