Based on the taxing and spending cycle, how will changing expenditures affect taxes collected by the government? Spending less w

Question

3 years ago

4

Based on the taxing and spending cycle, how will changing expenditures affect taxes collected by the government? Spending less w

ill help lower prices, leading to an increase in tax revenue for the government. Spending less will reduce services, leading to a reduction in tax revenue for the government. Spending more will boost prices, leading to an increase in tax revenue for the government. Spending more will increase services, leading to a reduction in tax revenue for the government.

History

2 answers:

ioda · Answer 1 · 2022-07-13T02:06:54+03:00

<h3>Answer:</h3><h2>Spending more will increase services, leading to a reduction in tax revenue for the government.</h2><h3>Explanation:</h3>

Increasing expenditure on services is a part of expansionary fiscal policy which is also usually followed by a reduction in taxes. This will also increase consumer spending but will tighten the government budget deficit as the government will have to increase it's borrowing.

Bond [772] · Answer 2 · 2022-07-13T03:14:28+03:00

Bond [772]3 years ago

6 0

The correct answer is b.