"As a result of the increase in government expenditures, the" A. money supply curve will shift right. B. money supply curve will shift left. C. money demand curve will shift right. D. money demand curve will shift left.

A. money supply curve will shift right.

Explanation: when the supply of money is increase by the central bank,the money supply curve will shift right. Leading to a lower interest rate,but,the money supply curve shifts left, when the supply of money falls,which leads to higher interest rate.

The answer is option C) "As a result of the increase in government expenditures, the money demand curve will shift right

Explanation:

Increased government spending is likely to cause a rise in aggregate demand (AD). This can lead to higher growth in the short-term. It can also potentially lead to inflation.

Higher government spending has a tremendous impact on the economy.

If successfully targeted on improving skills and education, government spending can increase labor productivity and enable higher long-term economic growth.

If spending is focused on welfare benefits or pensions, it may reduce inequality, but it could crowd out more productive private sector investment.

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