Question

_____ net exports or government expenses can encourage economic growth. But more government expenses can also increase the _____.

1. Decreasing, fiscal policy
I2. ncreasing, interest rates
3. Increasing, national debt

Answer 1

it is 3.

hope this helps! :)

Answer 2

3) Increasing, national debt

Step-by-step explanation:

Increasing net exports or government spending should increase the gross domestic product which means that the economy will grow.

GDP = consumption + investment + government + net exports

But if the government increases spending beyond its total revenues, it will have a budget deficit. When budget deficits start to accumulate, they increase the national debt.