BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A decrease in taxation is an example of a decision made by which sector:
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Household
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Business
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Financial
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Government
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Overseas
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Explanation:
Detailed explanation-1: -Government decreasing taxes is an example of: expansionary fiscal policy.
Detailed explanation-2: -The correct answer is Fiscal Policy. Fiscal Policy deals with the taxation and expenditure decisions of the Government.
Detailed explanation-3: -An expansionary fiscal policy lowers tax rates or increases spending to increase aggregate demand and fuel economic growth. A contractionary fiscal policy raises rates or cuts spending to prevent or reduce inflation.
Detailed explanation-4: -If a country faces a decrease in income tax revenue, it will spend less on welfare schemes. Reducingtax rates slightly will lower the risk of tax avoidance.
There is 1 question to complete.