Question

What is the pottential impact of increasing levels of goverement spendings?

Answer 1

Explanation:

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. It can also potentially.. lead to inflation

Answer 2

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.