417
RCMultiple Choice

Unit Summary — Cumulative exam

Question 417 • Career Explorations - EL3401

Expansionary spending takes place when a government makes the decision to

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

Explanation

Expansionary spending means increasing government purchases or other spending to boost demand and stimulate economic activity. Therefore, the correct choice is “raise spending to stimulate the economy.” Raising taxes or freezing employee numbers would generally restrain spending rather than expand it.

AI-written and checked against the verified answer.

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