Question

When taxes are high, businesses have less money to invest in equipment and workers.

Answer 1

I think that the sentence given above is a good exemble of cause-and-effect reasoning. Just read the sentence properly, and you'll get what I mean.

Answer 2

Answer: A) Cause-and-effect reasoning.

Explanation: Cause and effect reasoning is a kind of reasoning where we need to find out whether one of the statements is a direct cause of the other. In this kind or reasoning it is answered the question "why." The given sentence is an example of cause-and-effect reasoning, because the fact that  businesses have less money to invest in equipment and workers is the consequence (or effect) of taxes being high (the cause).