A 1 increase in government spending will have a larger impact-08856
A £1 increase in government spending will have a larger impact upon national income than a £1 tax cut because:
This multiple choice question (MCQ) is related to the book/course
vu eco401 Economics.
It can also be found in
vu eco401 Final Term - Quiz No.10.
A £1 increase in government spending will have a larger impact upon national income than a £1 tax cut because:
The government prints the pound it spends.
Not all of a tax cut is spent.
When taxes are cut, so too is government spending.
Taxes are an injection into the system.
