Question

Identify three ways that taxes affect the economy.

Answer 1

High taxes draw the money away from the private sector

low tax rates, give the economy a boost

the rising, and lowering of tax rates, are used to stabilize the economy

Step-by-step explanation:

Answer 2

One major way in which taxes affect the economy is that they limit the ability of consumers to spend, another is that they increase the ability of government to spend, and a third is that they benefit society as a whole.