Question

When the government injects money into the economy, consumers may have more disposable income, which may lead to

higher unemployment.
higher production.
lower production.
increases in taxes.

Answer 1

When the government injects money into the economy, consumers may have more disposable income, which may lead to **higher production**. This is because increased disposable income can boost consumer spending, leading to greater demand for goods and services. Businesses may respond to this increased demand by increasing their production to meet it.