An increase in government spending stimulates income and thus also increases personal consumption.

Name: An increase in government spending stimulates income and thus also increases personal consumption.
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Question

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When the government spends more, it injects more money into the economy, which can increase the income of individuals and businesses. This increase in income can lead to an increase in personal consumption, as people may have more disposable income to spend.

An Increase in Government Spending Stimulates Income and Thus Also