A natural consequence of the government continually spending more than what it takes in through tax receipts, ceteris paribus,
is that: A. consumption takes up a larger percentage of the economic activity.
B. the government takes up a larger percentage of the economic activity.
C. net exports take up a larger percentage of the economic activity.
D. investment takes up a larger percentage of the economic activity.
Answer: The government takes up a larger percentage of the economic activity.
Explanation:
The tax is a means by which a government of a state or a country generates revenue to run the activities of that region.
A tax is a percentage of the citizens income that us paid back to the government.
Tax is very essential as it gives the government of a state the much needed funds to run the activities of the country such as in the areas of : security, health and medicine, infrastructure and amenities.
If tax is less than a government's spending it means that the government is carrying the major burden of the economy.
The first main cause is that the north didn't want any slavery in the country so they elected Abraham Lincoln. He set a promise that slavery would end. It didn't do anything until after the war.