Question

Reducing taxes increases the amount of money in the economy because __________. A. the government has more money available to spend B. banks have more money available to make loans C. consumers have more of their income available for spending D. government spending goes up to make up for less tax money coming in Please select the best answer from the choices provided A

Answer 1

C) consumers have more of their income available for spending.

*Explanation*
• if people are paying less taxes, they have more disposable income to spend in the businesses and government will earn taxes from VAT.
hope this helps x

Answer 2

Answer:

C. consumers have more of their income available for spending

Explanation:

Taxes take away from our income and give it to government. If taxes reduce then we have more money to spend