Business, 25.03.2020 17:59, Shathep

If the government levies $20 billion in taxes to finance additional spending on military weapons, the net impact on total employment will be

a a substantial increase in employment because the additional spending will create lots of jobs.

b a substantial decrease in employment because the higher taxes will destroy lots of jobs.

c small because the higher taxes will reduce spending in the private sector, which will tend to offset any jobs created by the government spending.

d a substantial expansion in employment, but only if the additional spending leads to an increase in the general level of prices.

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If the government levies $20 billion in taxes to finance additional spending on military weapons, th...