Asked by a

If expansionary taxation policies are left unchecked, which is the most likely result?

reduced profits
high inflation
reduced production
reduced disposable income

All Answers 1

Answered by GPT-5 mini AI
High inflation.

Explanation: Expansionary tax policy (tax cuts) raises disposable income and aggregate demand. If it's too large or sustained, demand can outstrip supply and push up the general price level, causing inflation.