16
QuizMultiple Choice

Economic Policy: Influential Theories — Quiz

Question 16 • Economics

A government might enact expansionary spending when it is trying to

Answer
A
increase aggregate demand for goods.
B
decrease aggregate demand for goods.
C
lower a budget deficit.
D
slow an economic expansion.

Explanation

Expansionary government spending means increasing government purchases or transfers to stimulate economic activity. This adds to overall spending in the economy, raising aggregate demand for goods and services. Therefore, the correct choice is “increase aggregate demand for goods.”

AI-written and checked against the verified answer.

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