Federal taxes have which of the following effects on the economy?
A) If taxes are increased, the economy expands due to a balanced budget.
B) If taxes are decreased, businesses will invest the difference back into the economy.
C) There is no definitive agreement on the effect.
D) Lower federal taxes will cause budget surpluses.

Question

Quizplus · Accepted Answer

Some economists believe that higher rates of taxation are preferable, while others believe that tax levels should be lower.

Federal Taxes Have Which of the Following Effects on the Economy