Homework Help: Economics

Posted by Ami on Monday, September 14, 2009 at 9:14am.

If, when there is full employment, the federal government increases its spending without increasing its tax revenues, generally:

1. an increase in employment will occur
2. a serious depression will occur
3. the national debts will occur
4. inflation will occur

Is choice 3 correct???

Economics - economyst, Monday, September 14, 2009 at 11:44am
I think both 3 and 4 are correct. That said, as written, 3 is the obvious choice.

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