which of the following accurately explains the impact of an expansionary policy on interest rates…

which of the following accurately explains the impact of an expansionary policy on interest rates, inflation, and unemployment?\ngovernment spending with an expansionary policy can reduce inflation and interest rates but can increase unemployment.\ngovernment spending with an expansionary policy can increase unemployment and interest rates but can reduce inflation.\ngovernment spending with an expansionary policy can increase interest rates and inflation but can reduce unemployment.\ngovernment spending with an expansionary policy can reduce interest rates and unemployment but can increase inflation.

which of the following accurately explains the impact of an expansionary policy on interest rates, inflation, and unemployment?\ngovernment spending with an expansionary policy can reduce inflation and interest rates but can increase unemployment.\ngovernment spending with an expansionary policy can increase unemployment and interest rates but can reduce inflation.\ngovernment spending with an expansionary policy can increase interest rates and inflation but can reduce unemployment.\ngovernment spending with an expansionary policy can reduce interest rates and unemployment but can increase inflation.

Answer

Brief Explanations:

Expansionary policy involves increased government spending or tax - cuts. It boosts aggregate demand. Higher demand leads to more production, reducing unemployment. With more money in the economy and higher demand, prices rise (inflation increases). Also, increased borrowing due to higher economic activity can push up interest rates.

Answer:

Government spending with an expansionary policy can increase interest rates and inflation but can reduce unemployment.