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3 years ago

Which of these effects of expansionary spending would a government most want to avoid?

Social Studies

2 answers:

avanturin [10]3 years ago

6 0

It is B, higher inflation

AlladinOne [14]3 years ago

3 0

The correct answer is higher inflation.

Definitely, <em>when using expansionary spending, a government most want to avoid inflation effects.</em>

A government uses a expansionary spending when it increases government borrowing and sells bonds to the private companies.

An expansionary is considered a <em>macroeconomic policy</em>. Its purpose is to generate economic growth or a measure to combat inflation, doing four things: expanding the money supply, reduce interest rates, reduction of taxes, and increasing government spending.

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