[SOLVED] if expansionary taxation policies are left unchecked, which is the most likely result?

if expansionary taxation policies are left unchecked, which is the most likely result?

reduced profits

high inflation

reduced production

reduced disposable income
reduced profits

high inflation

reduced production

reduced disposable income

Answer:

Best Answer for if expansionary taxation policies are left unchecked, which is the most likely result?

The correct answer is: High inflation

Expansionary policy is a fiscal policy that involves the government seeking to increase higher government spending and lowering taxes in order to increase output in the economy because of an increase in aggregate demand.

However, if an expansionary fiscal policy is not kept in check, it could result in the policy being financed by constant printing of money and thus massive inflation will occur.

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