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WITCHER [35]
3 years ago
16

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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