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Agata [3.3K]
1 year ago
4

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

History
2 answers:
Pie1 year ago
8 0
The taxation policy simply aims at encouraging economic investments and reducing inflation.
 the policy frees money available for investments. it also decreases taxation, and buys floating treasury bills. the government aslo increases spending. This can be done by investing in social projects with an aim of facilitating the spread of money in the economy.
Evgen [1.6K]1 year ago
4 0

B. Reducing taxes. 


Expansionary policies are trying to put MORE money into the economy, and reducing taxes is one way of going about it.


Lower taxes = more money for consumers = more money for producers (because consumers will spend more) = increased economic growth. 


Read more on Brainly.com - brainly.com/question/2203098#readmore

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