Question

If expansionary taxation policies are left unchecked, which is the most likely result? A) reduced profits

B) reduced government spending
C) reduced production
D) reduced disposable income

Answer 1

I believe the correct answer from the choices listed above is the second option. If expansionary taxation policies are left unchecked, most likely the result would be reduced government spending. I hope this helps!!!

Answer 2

The correct answer is B. Reduced government spending.

If expansionary taxation policies are being left while they are unchecked they will result to reduced government spending.

Expansionary policy is termed as a fiscal policy which increases expenditure for government and decreased taxes.

If a tax is decreased it means that a lot of disposal income is being spend. When the disposal is high, then the consumption will increase and also the GDP increases.