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?\n\ngovernment spending with an expansionary policy can reduce inflation and interest rates but can increase unemployment.\n\ngovernment spending with an expansionary policy can increase unemployment and interest rates but can reduce inflation.\n\ngovernment spending with an expansionary policy can increase interest rates and inflation but can reduce unemployment.\n\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?\n\ngovernment spending with an expansionary policy can reduce inflation and interest rates but can increase unemployment.\n\ngovernment spending with an expansionary policy can increase unemployment and interest rates but can reduce inflation.\n\ngovernment spending with an expansionary policy can increase interest rates and inflation but can reduce unemployment.\n\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. This boosts aggregate demand. Higher demand leads to more production, reducing unemployment. It also puts upward pressure on prices (inflation). As the government borrows more to fund spending, interest rates tend to rise.

Answer:

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