🎴 Flashcard Mode
Government Spending and International Trade
Card1 / 15
Mastered0
Review0
QuestionClick to flip
How does government spending affect the demand for imports?
AnswerClick to flip back
A
It increases the demand for imports.
💡 Explanation:
When the government spends money, it creates additional income for households and businesses. This additional income can be used to purchase goods and services, including imports.