Economy, asked by nayaan49931, 6 months ago

Evaluate the impact of an increase in taxxes in an ecnomy

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Answered by janani10361

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Answer:

Taxes and the Economy. ... Tax cuts boost demand by increasing disposable income and by encouraging businesses to hire and invest more. Tax increases do the reverse. These demand effects can be substantial when the economy is weak but smaller when it is operating near capacity.

Answered by Anonymous

0

Answer:

Explanation:

Taxes and the Economy. ... Tax cuts boost demand by increasing disposable income and by encouraging businesses to hire and invest more. Tax increases do the reverse. These demand effects can be substantial when the economy is weak but smaller when it is operating near capacity.

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