In order for the government to increase spending,it must increase taxes to finance that spending.

Question

Quizplus · Accepted Answer

This statement is false. The government can increase spending through borrowing or printing more money, although both options come with potential consequences such as inflation and higher interest rates. However, if the government chooses to finance its spending through taxes, it may choose to increase taxes or cut spending in other areas to balance the budget.

In Order for the Government to Increase Spending,it Must Increase