Expansionary spending takes place when a government:

makes the decision toput 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.

Question

Social Studies

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30 July, 12:09

Expansionary spending takes place when a government:

makes the decision toput 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.

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Answers (2)

Know the Answer?

Nico Nichols · Answer 1

raise spending to stimulate the economy.

Explanation:

Expansionary spending occurs when the government increases money supply by either cutting taxes or increasing spending, with the aim to improve consumer spending and boost businesses. The raise in spending further stimulates the economy. An example is when the government inject money into circulation through government contracts or increase the access of banks to money that cant be lent to consumers.

Yusuf Leblanc · Answer 2

D: Raise spending to stimulate economy

Explanation: Correct on test

Expansionary spending takes place when a government:makes the decision toput 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.

Expansionary spending takes place when a government:

makes the decision toput 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.