Which of the following reduces household and business spending?

Question

Multiple choice question.

Taxes that reduce government spending

Taxes that stimulate economic expansion

Taxes that restrain economic expansion

Taxes that increase government spending

Answer 1

The option that reduces household and business spending is:

Taxes that restrain economic expansion.

This type of tax typically reduces disposable income for households and can discourage investment for businesses, leading to a decrease in overall spending.