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27 September, 03:29

What makes increased government spending an effective tool for increasing demand?

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  1. 27 September, 03:32
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    The increased government spending generates people to have an increase in funds available which will allow them to increase their consumption and liek that the demand increases.

    Explanation:

    If there is an increase in government spending, this will cause people to have more funds available, for example, it can cause the unemployed people to find jobs which will allow them to have more money to spend. Because of that, the demand for products and services will increase which can produce growth in the short term.
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