89.6k views
3 votes
Why might lawmakers increase taxes and decrease government spending?

A. to reduce unemployment
B. to increase consumer spending
C. to decrease the level of demand
D. to encourage corporate spending

User Chackle
by
8.4k points

1 Answer

2 votes
Lawmakers increase taxes and decrease government spending to decrease the level of demand.

If the demand for something is too high and there is not enough to be supplied, the government and lawmakers can change things up so that the demand drops by increasing rates of use or purchase. This will slow the demand and give them time to catch up or phase out the good/service in high demand.
User Ivan Alburquerque
by
7.8k points

No related questions found