What would be the long-term implications of the government implementing expansionary fiscal policies indefinitely?(1 point)

Question

Responses

Decreases in federal government revenue and increasing expenses cause large deficits and add to the national debt, straining the economy.
Decreases in federal government revenue and increasing expenses cause large deficits and add to the national debt, straining the economy.

Higher individual and corporate tax rates and greater government spending limit growth of the private sector economy.
Higher individual and corporate tax rates and greater government spending limit growth of the private sector economy.

Individual and corporate tax rates decrease along with spending for social programs, both of which would lead the economy to slow down or contract.
Individual and corporate tax rates decrease along with spending for social programs, both of which would lead the economy to slow down or contract.

Increases to the corporate income tax rate lead to faster economic growth and drive inflation upwards.

Answer 1

Increases to the corporate income tax rate lead to slower economic growth and may deter investment, ultimately harming the economy.