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When the Government Injects Money into the Economy Consumers May More Disposable Income, Which May Lead to Higher Unemployment.

Problemas

When the government injects money into the economy consumers may have more disposable income, which may lead to higher unemployment. higher production. lower production increases in taxes.

Roztwór

Dafne maestro · Tutor durante 5 años
Weryfikacja ekspertów
4.7 (234 Votos)

Respuesta

'B' - higher production.

Explicación

## Step 1The problem is about the effects of government fiscal policy, specifically the injection of money into the economy. This is a common strategy used by governments to stimulate economic activity during periods of economic downturn or recession.## Step 2When the government injects money into the economy, it increases the amount of money available to consumers. This can lead to an increase in consumer spending, which in turn can stimulate production.## Step 3The increase in consumer spending can lead to higher production as businesses respond to the increased demand for goods and services. This is because businesses will need to produce more goods and services to meet the increased demand.## Step 4The other options, such as higher unemployment, lower production, and increases in taxes, are not typically direct consequences of government injections into the economy. In fact, these outcomes are more likely to occur in the absence of such government intervention.