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

A.) higher employment
B.) higher inflation
C.) growth in production
D.) growth in consumer spending

Respuesta :

Answer: B.) Higher inflation on Ed2020

Explanation:

higher inflation growth in production growth in consumer spending.

The expansionary spending where it should be avoided is higher inflation.

What is the expansionary policy?

The motive of this is to promote the investment of the business and the spending of the consumer by injecting the money into the economy. It could be done via government deficit spending or rise in the business or consumers.

Therefore, The expansionary spending where it should be avoided is higher inflation.

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