3
QuizMultiple Choice

Economic Policy: Influential Theories

Question 3 of 10 • MCS Economics BL

Why did Friedrich Hayek call expansionary spending dangerous?

Answer
A
He felt it could lower the money supply and cause deflation.
B
He felt it could lead to inflation and poor decisions by consumers.
C
He felt it could lead to deflation and poor decisions by consumers.
D
He felt it could lower available credit and cause a drop in prices.
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