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Cutting back government spending

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As to how the federal deficit would be cut back, the economists rule out tax increases. Instead, the cuts must come on the expenditure side with the average growth of federal expenditures - including interest payments on the national debt - kept below average growth of GDP." Why would these economists favor cutting back government spending over raising taxes?

a) raising taxes is hated by voters

b) they prefer less government control over the economy

c) cutting government spending reduces the deficit more than does raising taxes

d) the multiplier effect of cutting government spending is larger than the multiplier effect of raising taxes

Reference no: EM131092753

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