A positive income elasticity value indicates that the good is a normal good.

In the long run,

a. a larger budget deficit means a larger money supply b. lower investment spending means slower growth of the standard of living c. a larger budget deficit means lower consumption spending d. a larger budget surplus means a smaller capital stock e. government spending has no effect on the budget deficit or surplus

Why might government expenditures be more appropriate than tax cuts to counter recessions? Is there any evidence for this thinking?