Fiscal Policy: Taxes Answers

Governments collect taxes to ensure that

there is sufficient money to fund private businesses.

citizens contribute to meeting society's needs.

politicians get paid in a timely manner.

a government program exists for every need that arises.

Under an expansionary taxation policy, the government tries to stimulate economic growth by

reducing deficits.

reducing taxes.

reducing demand.

reducing spending.

proportionallyprogressivelyregressively

proportionally

progressively

regressively

What gives the US government the power to collect taxes?

the Constitution

laws passed by Congress

an executive order

common law

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