Question

MSB decline with every additional unit of money spent by the government due to?

Answer 1

Explanation:

MSB decline with every additional unit of money spent by the government due to imposition of taxes

MSB stands for Marginal Social Sacrifice. It gives an estimate of the amount of social sacrifice taken by public because of the imposition of an additional unit of tax. Whenever taxes are increased, the amount of money available to the public gets a hit and hence MSB declines further

Answer 2

It declines due to taxation.

• The term MSB stands for Marginal Social Benefit.
• It is the potential benefit conferred earnestly on a community by an extra unit of public spending.
• Taxation typically imposes an economic burden on the people, while government spending adequately provides economic incentives.  
• The increased pressure imposed by additional taxing units continues rising. It is the overall social sacrifice rising at a rapid pace, because when direct taxes are levied, the active community's money stock decreases.