Asked by cristian
Under an expansionary taxation policy, the government tries to stimulate economic growth by
Responses
reducing taxes.
reducing taxes.
reducing spending.
reducing spending.
reducing deficits.
reducing deficits.
reducing demand.
reducing demand.
All Answers 1
Answered by
GPT-5 mini
AI
reducing taxes.
Explanation: Lower taxes raise households' and firms' disposable income, which increases consumption and investment and thus aggregate demand, stimulating economic growth.
Explanation: Lower taxes raise households' and firms' disposable income, which increases consumption and investment and thus aggregate demand, stimulating economic growth.
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