One argument in favor of tax cuts over spending-based fiscal stimulus is that:
A) tax cuts increase the MPC by a larger amount than government spending.
B) tax cuts temporarily increase planned spending, but government spending permanently increases private spending.
C) in theory the tax multiplier is larger than the government spending multiplier.
D) historically tax cuts have been more successful than spending-based fiscal stimulus.

Question

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The Answer of One argument in favor of tax cuts over spending-based fiscal stimulus is that:
A) tax cuts increase the MPC by a larger amount than government spending.
B) tax cuts temporarily increase planned spending, but government spending permanently increases private spending.
C) in theory the tax multiplier is larger than the government spending multiplier.
D) historically tax cuts have been more successful than spending-based fiscal stimulus.

One Argument in Favor of Tax Cuts Over Spending-Based Fiscal