What economic outcome does the government set out to achieve by increasing their own spending?
Suggested Answer: D
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12 comments · newest first
AP
Apolonia
2 months ago
B sounds good too, but it’s more about immediate effects. D is clearer.
MI
Mignon
2 months ago
I agree, but A could also be a result. Inflation can happen.
SH
Shawana
2 months ago
I think D is the best choice. Short-term stimulation is key.
ED
Edwin
2 months ago
A can happen, but it’s not the primary aim.
CL
Clarence
2 months ago
Totally agree with D, it’s all about short-term boosts!
NI
Nina
2 months ago
Really? I doubt it’ll work as planned.
CH
Charolette
3 months ago
I think B makes sense too, more cash for people!
HA
Hana
3 months ago
D is the main goal, definitely!
PE
Pearline
3 months ago
I lean towards option D as well, but I wonder if they might be trying to increase individual spending power too. It's hard to say for sure!
LE
Lenna
3 months ago
I feel like this question is similar to one we practiced on fiscal policy effects. I think boosting business profits was mentioned, but it wasn't the main goal.
EV
Eveline
3 months ago
I'm not entirely sure, but I remember something about inflationary pressure being a potential outcome too. It could be a tricky question.
BR
Brunilda
4 months ago
I think increasing government spending is mainly about stimulating the economy in the short run, right? That seems to be what we discussed in class.