Question

A natural consequence of the government continually spending more than what it takes in through tax​ receipts, ceteris​ paribus, is that:

A. consumption takes up a larger percentage of the economic activity.
B. the government takes up a larger percentage of the economic activity.
C. net exports take up a larger percentage of the economic activity.
D. investment takes up a larger percentage of the economic activity.

Answer 1

Answer: The government takes up a larger percentage of the economic activity.

Step-by-step explanation:

The tax is a means by which a government of a state or a country generates revenue to run the activities of that region.

A tax is a percentage of the citizens income that us paid back to the government.

Tax is very essential as it gives the government of a state the much needed funds to run the activities of the country such as in the areas of : security, health and medicine, infrastructure and amenities.

If tax is less than a government's spending it means that the government is carrying the major burden of the economy.