If an increase in government expenditures makes taxpayers believe that taxes and the distortion then

Question

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If taxpayers believe that increased government expenditures will lead to higher taxes and distortions, they may anticipate a future tax burden. This expectation can lead to reduced consumption and investment as individuals and businesses may save more to prepare for future tax liabilities, leading to a decrease in both consumption and investment.

If an Increase in Government Expenditures Makes Taxpayers Believe That