what is a potential negative effect of an expansionary policy?\ndecreased borrowing\nincreased interest…

what is a potential negative effect of an expansionary policy?\ndecreased borrowing\nincreased interest rates\nincreased inflation\ndecreased available credit
Answer
Brief Explanations:
Expansionary policies aim to stimulate economic growth by increasing the money - supply or government spending. When there is more money in the economy, demand for goods and services can outpace supply, leading to inflation. Decreased borrowing and decreased available credit are not typical effects of expansionary policies as they usually make borrowing easier. Expansionary policies often lead to lower interest rates to encourage borrowing, not increased interest rates.
Answer:
increased inflation