Question

Under what circumstances would the government most likely raise taxes?
O
A. Consumer spending has decreased.
O
B. The economy is growing rapidly.
O
C. Government spending has increased recently.
O
D. Unemployment is growing.

Answer 1

Now we have two choices, B, or C. The government would raise taxes if the economy grew enough to allow it, however a more likely option would be that the government started spending more money than they truly have. The answer is C.

Answer 2

Government spending has increased recently is the most likely circumstance in which the government would raise taxes. Thus, the correct option is C). Government spending has increased recently.

Why does the government raise taxes?

There are so many reason government would raise the taxes. Most probably is that it would increase the tax in the situation of inflation and rapid economic growth.

As economy is growing rapidly and inflation is about to touch the ceiling. So, in order to decrease economic growth and inflationary pressure, the government can increase taxes and keep its spending constant.

When government spend more money than its earning, it is most likely to raise the taxes as it would be beneficial for the government.

Learn more about the government spending here:-

https://brainly.com/question/474561

#SPJ5