A government attempt to stimulate the economy through increased spending is most likely to have which of these undesirable effects?

Question

Quizplus · Accepted Answer

Increased government spending can lead to a rise in the inflation rate because the increased demand for goods and services can drive up prices. This can ultimately harm the economy and consumers, as the cost of living increases and the purchasing power of money decreases. Decreased productivity, a shrinking middle class, and increased unemployment are not necessarily direct effects of increased government spending.

A Government Attempt to Stimulate the Economy Through Increased Spending