Which of these effects of expansionary spending would a government most want to avoid? higher employment higher inflation growth in production growth in consumer spending

Answer

Higher Inflation

Explanation

Inflation is the aspect of general increase in prices and fall in the purchasing value of money. It is normally measured as an annual percentage change Image result for what does higher inflation.

As inflation rises, in addition to businesses being forced to raise their prices, banks are forced to raise interest rates in order to maintain a profit margin and higher rates means that marginal businesses will fail, thus increasing unemployment and harming the overall economy. in Higher inflation can be caused by an increase in demand for goods relative to supply. When more people fight over fewer goods, the price increases  The central bank plays a great role in attempting to limit inflation for the purposes of keeping the  smooth running of the economy.

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