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

Question

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] · Answer 1 · 2021-12-12T14:36:23+03:00

<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] · Answer 2 · 2021-12-12T15:40:41+03:00

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.