A natural consequence of the government continually spending more than what it takes in through tax receipts, ceteris paribus,

Question

4 years ago

11

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.

Social Studies

1 answer:

Wittaler [7] · Answer 1 · 2022-01-30T14:27:05+03:00

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.

A natural consequence of the government continually spending more than what it takes in through tax​ receipts, ceteris​ paribus,

A natural consequence of the government continually spending more than what it takes in through tax receipts, ceteris paribus,