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Taxes paid by enterprises are raised by the government in an effort to balance the budget. There will be less demand for loanable cash.
The government's budget is balanced in what way?
To finance deficits, the federal government borrows money through selling Treasury bonds, bills, and other securities. What is referred to as the national debt is the sum of this borrowing along with the interest owed to the investors who purchased these securities.
When the government raises taxes, what kind of policy is being put into place?
There is constant debate over which strategy is more effective in the long and short terms. Fiscal policy is the method through which our government employs its capacity to spend money and collect taxes to have an impact on the economy.
When the government spends more than it takes in, there is a budget deficit. When the government spends less than it collects, there is a budget surplus. Fiscal year (FY) 2022 saw the government run a deficit due to spending $6.27 trillion more than it collected (revenue).
Learn more about Fiscal policy: https://brainly.com/question/27250647
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