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brilliants [131]
3 years ago
7

How do federal income taxes support the economy?

Social Studies
1 answer:
S_A_V [24]3 years ago
3 0
When the economy<span> is weak, for example, the Federal Reserve tries to boost consumer and business demand by cutting interest rates or purchasing financial securities. Congress, for its part, can boost demand by increasing spending and cutting </span>taxes<span>. </span>Tax<span> cuts increase household demand by increasing workers' take-home </span>pay<span>.</span>
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