An increase in government spending increases the supply of money in our economy.

Name: An increase in government spending increases the supply of money in our economy.
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Question

Quizplus · Accepted Answer

An increase in government spending does not directly increase the supply of money; it typically involves reallocating existing funds or increasing public debt, whereas the supply of money is controlled by central banking mechanisms such as monetary policy.

An Increase in Government Spending Increases the Supply of Money