If expansionary taxation policies encourage growth, are they always appropriate to implement?

A. No, government services could encourage growth but other practices could be more effective based on the economic situation.

B. Yes, the private sector can easily and affordably replace all services and facilities cut by the government.

C. No, the government is capable of providing many but not all services individuals and businesses need.

D. Yes, the government will still ensure that individuals and businesses continue to receive all necessary services.

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Fabian Singh

9 March, 03:17

If expansionary taxation policies encourage growth, are they always appropriate to implement?

A. No, government services could encourage growth but other practices could be more effective based on the economic situation.

B. Yes, the private sector can easily and affordably replace all services and facilities cut by the government.

C. No, the government is capable of providing many but not all services individuals and businesses need.

D. Yes, the government will still ensure that individuals and businesses continue to receive all necessary services.

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Answers (2)

Know the Answer?

Kaylin Sandoval · Answer 1

the answer is A, just took the quiz

Micah Gregory · Answer 2

A. No, government services could encourage growth but other practices could be more effective based on the economic situation.

Explanation:

Expansionary fiscal policy refers to a strategy in which the government expands the money supply in the economy. This can either increase government spending or cut taxes.

The purpose of expansionary fiscal policy is to boost economic growth, therefore, it is often used when the government wants to reduce unemployment, increase consumer demand, and avoid a recession. I

The policy comes with some risks, so other practices could sometimes be more effective based on the economic situation.