Question

When the government injects money into the economy, consumers may have less purchasing powers, which may lead to

Answer 1

I would think that it would increase production.
If people are able to spend money, then the producers are able to produce more to fill the demand.

Answer 2

Answer:

More money in the economy would increase the production of goods in the country.

Explanation:

As human beings, we are always consuming goods and services because our needs are endless. Consuming goods and services is the most natural impulse of the human being.

The real problem, then, is that an individual's demand is constrained by his ability to produce goods and services. To claim (goods and services), an individual has before producing (goods or services). The more goods or services an individual is able to produce, the more goods and services he may demand, and consequently acquire. For this reason, when the consumer is with a low purchasing power, the economy of the country goes bad. When an economy goes bad, the government must inject money into the economy of the country, this will cause the production of goods and services to increase and consequently will increase the purchasing power of the consumer.