Question

Analyse how an increase in government spending may cause economic growth

Answer 1

hey mate here is your answer.

✔ Impact of Increasing Government Spending. Increased government spending is likely to cause a rise in aggregate demand (AD).

✔ This can lead to higher growth in the short-term. ... Higher debt interest payments – If the government has higher debt and higher bond yields, then it can cause increased costs of borrowing.

I hope it helps you.