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lesson pretestMultiple Choice

Pretest

Question 1 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

A government might enact expansionary spending when it is trying to

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

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.”

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