Question

HELP!

1. Think about why taxation exists in an economy; Why does the government utilize taxation? What is the tax money used for?

2. Think about the Federal Reserve; What is the role of the Federal Reserve in the USA? Give two specific examples.

Answer 1

Taxes generally contribute to the gross domestic product (GDP) of a country. Because of this contribution, taxes help spur economic growth which in turn has a ripple effect on the country's economy; raising the standard of living, increasing job creation, etc.

Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.

Step-by-step explanation: