As the economy expands,tax revenues _____ and transfer payments ____.

Name: As the economy expands,tax revenues _____ and transfer payments ____.
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As the economy expands, people have more income to be taxed on and businesses earn more profits to be taxed on. Therefore, tax revenues rise. Additionally, with more people employed and earning higher incomes, there is less need for transfer payments such as welfare or unemployment benefits, so transfer payments fall.

As the Economy Expands,tax Revenues _____ and Transfer Payments ____

As the Economy Expands,tax Revenues _ and Transfer Payments