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lukranit [14]
3 years ago
14

The standard view in economics is that tax cuts without​ ________ will​ ________ the budget deficit resulting in​ ________.

Business
1 answer:
lakkis [162]3 years ago
4 0
The standard view in economics is that tax cuts without SPENDING CUTS will INCREASE the budget deficit resulting in CROWDING OUT INVESTMENT. When a government lowers tax without minimizing its spending, it leads to crowding out investment effect, which is a situation in which increased interest rates leads to a decrease in private investment spending in such a way that it takes color out of the initial increase of total investment spending.
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