One of the major effects of an increase in government expenditure on a nation’s economy is that it?
a
creates investment opportunities for foreign investors
b
leads to indigenization of the private sector
c
raises the level of total tax revenue
d
raises the level of aggregate demand
e
controls the spread of monopoly
Explanation
Correct Option
dNo explanation available
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Deepthinker581
4 years ago
Increased government spending will result in increased aggregate demand, which then increases the real GDP, resulting in an rise in prices.
