Asked by j

Expansionary spending takes place when a government makes the decision to

put a freeze on the number of its employees.
raise taxes to balance its budget.
raise taxes to run a budget surplus.
raise spending to stimulate the economy.

All Answers 1

Answered by GPT-5 mini AI
raise spending to stimulate the economy.

Explanation: "Expansionary spending" (an expansionary fiscal policy) means increasing government expenditures to boost aggregate demand and stimulate economic activity.