If expansionary taxation policies are left unchecked, which is the most likely result?

reduced profits

high inflation

reduced production

reduced disposable income

Question

Social Studies

Keon Pacheco

14 March, 14:21

If expansionary taxation policies are left unchecked, which is the most likely result?

reduced profits

high inflation

reduced production

reduced disposable income

+5

Answers (2)

Know the Answer?

Osvaldo Fry · Answer 1

High Inflation? thats what im putting

Lawson Morton · Answer 2

The correct answer is: High inflation

Expansionary policy is a fiscal policy that involves the government seeking to increase higher government spending and lowering taxes in order to increase output in the economy because of an increase in aggregate demand.

However, if an expansionary fiscal policy is not kept in check, it could result in the policy being financed by constant printing of money and thus massive inflation will occur.

If expansionary taxation policies are left unchecked, which is the most likely result?reduced profitshigh inflationreduced productionreduced disposable income

If expansionary taxation policies are left unchecked, which is the most likely result?

reduced profits

high inflation

reduced production

reduced disposable income