Poochymoochy
Poochymoochy Poochymoochy
  • 03-05-2019
  • History
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(25 Points)

How do taxes support the economy?

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vielmrlorgozz
vielmrlorgozz vielmrlorgozz
  • 03-05-2019

When the economy is weak, for example, the Federal Reserve tries to boost consumer and business demand by cutting interest rates or purchasing financial securities. Congress, for its part, can boost demand by increasing spending and cutting taxes. Tax cuts increase household demand by increasing workers' take-home pay.

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