A government enacts a program to subsidize farmers with an expansive spending program of $10 billion. At the same time, the government enacts a $10 billion tax increase over the same period. Which of the following statements best describes the impact on aggregate demand?

A.Lower growth because the tax increase will have a greater effect.

B.No effect because the tax and spending effects just offset each other.

C.Higher growth because the spending increase will have a greater effect.