Expansionary spending takes place when a government makes the decision to
A. put a freeze on the number of its employees,
B. raise taxes to balance its budget.
C. raise taxes to run a budget surplus.
D. raise spending to stimulate the economy.

Buying Treasuries from banks boosts bank reserves, providing a way for them to give loans to clients, making it possible for consumers to buy houses, vehicles, and establish or expand businesses.

Expansionary spending occurs when the government decides to increase spending in order to stimulate economic growth.

Option D. is correct.

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Expansionary spending takes place when a government makes the decision to A. put a freeze on the number of its employees, B. raise taxes to balance its budget. C. raise taxes to run a budget surplus. D. raise spending to stimulate the economy.

Respuesta :

Define Expansionary Policy.

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Expansionary spending takes place when a government makes the decision to
A. put a freeze on the number of its employees,
B. raise taxes to balance its budget.
C. raise taxes to run a budget surplus.
D. raise spending to stimulate the economy.