When the government injects money into the economy, consumers may have more purchasing power, which may result in what? A. higher unemployment. B. increases in production. C. lower production. D. increases in taxes.

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Snuffles

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10 January, 20:32

When the government injects money into the economy, consumers may have more purchasing power, which may result in what? A. higher unemployment. B. increases in production. C. lower production. D. increases in taxes.

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Giuliana Case · 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. So I think B.