Ask Question
13 May, 09:53

What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?

+5
Answers (1)
  1. 13 May, 13:22
    0
    Expansionary fiscal policy and budget deficit mean that there will be more money in the economy, but it does not reflect the fact that the economy is stronger that there is actually more value in the economy.

    The situation when more money enters but not more goods and producs enter is leading to inflation - this is the correct answer.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit ...” in 📙 Social Studies if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers