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Decreased government spending increased taxes increase price level?
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When would the government most likely increase its spending?
When unemployment has increased
What makes increased government spending an effective tool for increasing demand?
By increasing government spending, you increase the demand for certain products because the government is looking to buy those products. The government can act as a consumer, and when a consumer spends more, the demand for goods and services is increased.
When would the government most likely decrease its spending?
. When unemployment has decreased
Why is it difficult for the federal government to increase or decrease spending?
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
What drove consumerism and helped to increase consumer spending during the 1950s?
The increase of produced goods from former wartime factories increased the goods available for purchase, which increased consumerism and consumer spending.
When would the government most likely increase its spending?
When unemployment has increased
When would government most likely increase its spending?
When unemployment has increased
What makes increased government spending an effective tool for increasing demand?
By increasing government spending, you increase the demand for certain products because the government is looking to buy those products. The government can act as a consumer, and when a consumer spends more, the demand for goods and services is increased.
When would the government most likely decrease its spending?
. When unemployment has decreased
What did Ronald Reagan's economic policies did?
They increased defense spending and lowered taxes.
Both the increased spending by the national government and the nationally imposed income tax?
Both the increased spending by the national government and the nationally imposed income tax
Why is it difficult for the federal government to increase or decrease spending?
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
What drove consumerism and helped to increase consumer spending during the 1950s?
The increase of produced goods from former wartime factories increased the goods available for purchase, which increased consumerism and consumer spending.
What will increased consumer spending?
Consumer spending is called consumption, which is a component of Aggregate Demand in our economy. In monetary policy, the Federal Reserve can buy treasuries, lower the reserve requirement, and lower the discount rate which will increase consumption. In fiscal policy, the government can cut taxes to increase consumer spending.
What did President Roosevelt do for the US economy?
He increased government spending
How did government spending affect the economy-?
Federal spending on forgein aid increased demand for U.S goods.
Causes of public debts?
majorly caused by increased government spending
