Government spending is an injection in the sense that it
A)increases the amount of total spending.
B)increases the size of the federal deficit.
C)decreases the amount of household saving.
D)decreases the amount of taxes paid.

Question

Quizplus · Accepted Answer

Government spending increases the amount of total spending in the economy, which is an injection. It can lead to a multiplier effect and increase aggregate demand.

Government Spending Is an Injection in the Sense That It