Question

How could the federal government use taxing and spending to increase economic growth? Why would your answer get that result?

How could the federal government use taxing and spending to decrease economic growth? Why would your answer get that result?

Answer 1

The government might issue tax stimulus rebates to increase aggregate demand and fuel economic growth. The logic behind this approach is that when people pay lower taxes, they have more money to spend or invest, which fuels higher demand.

Step-by-step explanation:

hope this helps:))

Answer 2

The government might issue tax stimulus rebates to increase aggregate demand and fuel economic growth. The logic behind this approach is that when people pay lower taxes, they have more money to spend or invest, which fuels higher demand.