The tax multiplier is always more effective in stimulating the economy than government multiplier because tax...

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The tax multiplier is always more effective in stimulating the economy than government multiplier because tax cut give people

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Answer 1

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yes, tax multiplier is more effective than the government multiplier

as government multiplier refers to the government spending which will be done on the preference of government by considering to how much they want to spend and in which particuar field which doesnot mean that who actually requires money will get the money or the money spend will be equitable

but in the case of tax cut each person had to pay somewhat less and he or she can then utilise that saved money in their other works or utilise as per their requirement

so answer here is true.

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Answer 2

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