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CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
Pretest
Question 7
7
lesson pretest
Multiple Choice
Pretest
Question 7 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
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 lower available credit and cause a drop in prices.
C
He felt it could lead to deflation and poor decisions by consumers.
D
He felt it could lead to inflation and poor decisions by consumers.
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