Question

In a mixed economic system the government might remove taxes from the production of goods to reach the economic goal of

Answer 1

Answer: B - economic growth

Explanation:

Taxes reduce the amount of money that people have to consume and save so when taxes are removed, people will spend and save more.

Higher consumption is good for the economy as people buying more will lead to producers having to produce more and having to hire more people to do so.

Savings are also good for the economy because it means that there is more money for investment. When people with ideas access these savings, they will be able to invest in the economy and build more industry which will lead to economic growth.