Which statement is NOT a reason government spending sometimes increases growth?
A) Spending can lower inflation and keep prices and wages steady.
B) Spending can move unemployed factors of production into productive activities.
C) Spending can encourage additional private investment.
D) Spending can increase consumer confidence.

Question

Quizplus · Accepted Answer

Government spending is typically aimed at stimulating economic growth by increasing demand, reducing unemployment, and encouraging private investment. It does not directly lower inflation; in fact, excessive government spending can lead to higher inflation by increasing demand too much.

Which Statement Is NOT a Reason Government Spending Sometimes Increases