3
QuizMultiple Choice

Economic Policy: Influential Theories — Quiz

Question 3 • Economics

A government might enact expansionary spending when it is trying to

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

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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