As compared to government spending, spending generated by a tax cut is likely to affect aggregate demand A.  less quickly and more likely to be spent of projects with little benefits b.  less quickly but less likely to be spent of projects with little benefits C. more quickly and more likely to be spent on projects with little benefits D more quickly and less likely to be spent on projects with little benefits

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Of these answers, D is the one that is the best answer.

Most economists believe that tax cuts are better than government spending.  They will be spent more quickly because the money will be in the hands of the taxpayers as soon as it is earned.  They will not have to wait until the government program gets going.

In addition, tax cut money will be spent on things that consumers want.  By contrast, government spending might be used on projects like the "bridge to nowhere" or other projects that are selected for political reasons, not for economic ones.

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