they go up
Increased government spending can lead to higher taxes if the government needs to fund its expenditures through revenue generation. Conversely, if the government borrows money or uses surplus funds to finance spending, taxes may remain unchanged or even decrease. The impact on taxes largely depends on the government's fiscal policy decisions and the overall economic context. Ultimately, the relationship between government spending and taxes is complex and influenced by various factors, including economic growth and public demand for services.
deficit
deficit
deficit
they go up
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
taxes
Taxes.
The balanced budget multiplier formula is 1. It means that for every dollar increase in government spending, there is an equal increase in taxes to balance the budget. This can impact economic stability by potentially reducing the overall impact of government spending on the economy.
increase taxes and and spend systematically
Consumption, Investment, Government spending, and Net Taxes
Increased government spending can lead to higher taxes if the government needs to fund its expenditures through revenue generation. Conversely, if the government borrows money or uses surplus funds to finance spending, taxes may remain unchanged or even decrease. The impact on taxes largely depends on the government's fiscal policy decisions and the overall economic context. Ultimately, the relationship between government spending and taxes is complex and influenced by various factors, including economic growth and public demand for services.
Taxes- Government Spending- Transfer Payments
Security Spending
when economy is stable
yes