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When the government injects money into the economy, consumers may have more purchasing power, which may result in ___.

a. higher unemployment
b. increases in production
c. lower production
d. increases in taxes

2 Answers

6 votes

Answer:

b. increases in production

Step-by-step explanation:

When the economy is slow, the government will inject the money to improve the economy and also consumer will have more purchasing power. Therefore, the production will increase.

Hope this will helpful.

Thank you.

User Jeff Marino
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5 votes
When the government injects money into the economy, consumers may have more purchasing power, which may result in B. increases in production.
As long as people buy stuff, the demand will grow, and with it, the production will increase as well.
User Mehdi Saffar
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6.9k points