Based on the Keynesian model, one reason to support government spending increases over tax cuts as measures to increase output is that:

Question

Answer

government-spending increases do not lead to unplanned changes in inventories, but tax cuts do.

Answer

government spending increases the MPC more than tax cuts.

Answer

the government-spending multiplier is larger than the tax multiplier.

Answer

increases in government spending increase planned spending, but tax cuts reduce planned spending.

Crowdly