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USPshnik [31]
4 years ago
5

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:
Firdavs [7]4 years ago
8 0
<h2>Answer</h2><h3>Spending more will increase services, leading to a reduction in tax revenue for the government.</h3><h2>Explanation</h2>

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.

Sholpan [36]4 years ago
5 0

Correct answer "Spending less will reduce services, leading to a reduction in tax revenue for the government. " or B.


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