If the federal government wants to encourage businesses and consumers to spend more money, it would most likely to reduce the price of the goods to attract more buyers and sellers
In order to ensure that consumers and businesses spend more, the government should try to reduce the rate of tax. If the tax rate is reduced, more money would be available for both consumers and businesses. The lower the tax rate, the higher the amount of money available and vice versa. Thus, a reduction in tax rate will make people to spend more on goods and services.
