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1 vote
Where would you increase or decrease the amount of government spending?

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User Rson
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2 Answers

2 votes
When the government decreases taxes, disposable income increases. That translates to higher demand (spending) and increased production (GDP). ... If the government were to keep taxes the same, but decrease its spending, it would have the same effect as a tax increase, but through a slightly different channel.
answered
User Artuska
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7.3k points
2 votes

I would increase government spending in natural disaster relief.

answered
User Michael Banzon
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7.9k points

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