how do i answer a question about cutting public expenditure rather than increasing taxation?
I have these points
High Tax results in disincentive effects e.g. consumption falls (big part of AD) and consumer/business confidence falls
High Tax results in FDI falling due to increasing corporation tax resulting in less profit
cutting public expenditure by giving projects to the private sector may result in an efficient allocation of resources due to profit motive assuming competition
cutting public expenditure results in less interest repayments/less loan repayments making the national debt smaller?
Is that okay for a 30 marker(each point expanded)