what is a potential negative effect of an expansionary policy?\n○ decreased borrowing\n○ increased interest…

what is a potential negative effect of an expansionary policy?\n○ decreased borrowing\n○ increased interest rates\n○ increased inflation\n○ decreased available credit

what is a potential negative effect of an expansionary policy?\n○ decreased borrowing\n○ increased interest rates\n○ increased inflation\n○ decreased available credit

Answer

Brief Explanations:

Expansionary policies increase the money - supply or stimulate economic activity. This can lead to too much money chasing relatively few goods, causing increased inflation. Decreased borrowing, increased interest rates, and decreased available credit are not typical negative effects of expansionary policies.

Answer:

increased inflation