Question

Select the correct answer from each drop-down menu.

when the government decided to cut the tax rate. This tax cut was a part of the
The amount Ron is able to save
government's
policy.

Answer 1

The amount Ron can save increases when the government decided to cut the tax rate. This tax cut was a part of the government’s expansionary policy.

What is government’s expansionary policy?

A government or central bank's set of economic actions intended to promote economic growth is known as expansionary policy. The goal of these programs is to raise overall spending and demand.By utilizing budgetary tools to either raise spending or lower taxes, the government can expand the money supply in the economy and provide consumers and businesses with more money to invest. This is known as expansionary fiscal policy.

Hence, Ron's savings increase as a result of the government's decision to lower the tax rate. This tax cut was a component of the government's program of expansion.

complete question;

The amount Ron is able to save ____ when the government decided to cut the tax rate. This tax cut was a part of the government’s ____ policy.

first blank: decrease, increase, remained constant

second black: contractionary policy, development policy, exansionary policy

Answer 2

government's policy.

Step-by-step explanation:

Govenment policies on tax decide what to tax and where to allocate the resources of the tax.