Ask your own question, for FREE!
Economics - Financial Markets 7 Online
OpenStudy (anonymous):

what does government spending do?

OpenStudy (anonymous):

Spending increase money flow in the economy spending means investment, investment in turn would create job opportunities which would create demand for goods as more people are employed , labor would produce goods and services according to the demand, transaction takes place, one individuals expenditure is another persons income...

OpenStudy (rina.r):

The government spends money for a variety of reasons: •Reduce inequality (welfare payments like unemployment benefit). •Provide public goods (fire, police, national defence) •Provide important public services like education and health (merit goods) •Debt interest payments. •Transport •Military spending

Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!
Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!