Question

when the government injects money into the economy, consumers may have more disposable income, which may lead to

higher unemployment.

higher production.

lower production.

increases in taxes.

Explanation:

When the government injects money into the economy, consumers having more disposable income means increased demand for goods and services. Businesses respond to this increased demand by producing more, so higher production occurs. Higher unemployment is unlikely as more production may need more workers. Lower production contradicts the demand increase. Increases in taxes are not a direct result of consumer disposable income rise from government injection (tax changes are a government policy tool, not a direct outcome of this income effect).

Answer:

B. higher production