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It depends on what they spend on. If they spend on infrastructure for instance then more people end up being paid for goods and services, this in turn leads to more spending on other things as the money is spent making the economy more vibrant and at the same time improving the local economy to produce more efficiently. If government spending is increased in the military and on weapons very little of it will find its way back into the national economy and there will be even fewer advantages in future infrastructure .
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How did a decade of Republican government affect the economy?
A decade of republican government put the economy in debt. During Reagan's time the money was spend on defense spending.
How did government spending affect the economy-?
Federal spending on forgein aid increased demand for U.S goods.
How does logging affect the economy?
Logging increases the economy if the logs are exported.
How do increase in consumer spending affect the economy?
With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
How does consumer confidence affect the economy?
Increases purchases from producers
How did a decade of Republican government affect the economy?
A decade of republican government put the economy in debt. During Reagan's time the money was spend on defense spending.
How did government spending affect the economy-?
Federal spending on forgein aid increased demand for U.S goods.
How do government priorities affect government spending?
taxes
How does logging affect the economy?
Logging increases the economy if the logs are exported.
An increase in government spending lowers interest rates and increases the rate of investment in new capital?
Yeh and it gonna have some serious ethical and economical ripples through the economy for w while each small or large shift is gonna affect it in on way or another
How do increase in consumer spending affect the economy?
With an increase in consumer spending, there will be an increase in demand for goods/services, and therefore an increase in production, which drives the economy up.
How does consumer confidence affect the economy?
Increases purchases from producers
How do changes in income affect the demand for a good?
Increases in income allow for more disposable income which increases spending and the demand for goods. Decreases in income conversely decreases disposable income which decreases spending.
Is fiscal policy when the government uses government spending and taxes to affect economic performance?
Yes. :)
What is the purpose of macroeconomic policy?
Macroeconomics is the study of the economy as a whole. Macroeconomic policy can be split into two branches: 1. Fiscal policy, which is the use of government spending to affect the economy. 2. Monetary policy, the process by which governments set the money supply.
How does the government regulation affects the economy?
It would have been more apt, if it is reworded as How does the government regulation affect market economy. In a controlled economy, government decides what its economy should be and hence has no relevance.In a market economy, the fundamental aspect of Choice and freedom... This enables production as per market demand and also creation of new markets for products. Government regulations affect the choice and freedom and hence may affect the market dynamics and economy.
How did the new deal affect the government?
It made the economy bad
