What happens when the government finances a job creation project through taxes and borrowing?

Question

Business

Rigoberto Christensen

21 January, 19:28

What happens when the government finances a job creation project through taxes and borrowing?

+3

Answers (1)

Know the Answer?

Izabelle Stein · Answer 1

What happens when the government finances a job creation project through taxes and borrowing? If the government finances a job through taxes and borrowing there are higher taxes or interest rates and that usually causes a decline in employment. The higher taxes and interest rates are imposed because they government is using up the funds to fund their current project so the higher rates are how the government will get the funds back.