Suppose the federal government implemented a flat tax to replace the income tax, and the flat tax saved taxpayers a total of $5 billion. A tax change such as this could be viewed as an example of the federal government implementing

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Implementing a flat tax that saves taxpayers money effectively puts more money into the hands of consumers and businesses, which can stimulate economic activity. This is an example of expansionary fiscal policy, which is aimed at increasing economic output through government spending or tax cuts.

Suppose the Federal Government Implemented a Flat Tax to Replace