Expansionary spending takes place when a government makes the decision to

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

Respuesta :

Answer:

The correct answer is D: raise spending to stimulate the economy.

Explanation:

I took the Test Review on Edge 2020.

Expansionary spending takes place when a government makes the decision to raise spending to stimulate the economy,

What is expansionary spending?

Expansionary spending is a type of expansionary fiscal policy. It is when the government increases its spending in order to increase the money supply in the economy.

Another types of expansionary fiscal policy is reducing taxes. Reducing taxes increases disposable income which increases the level of aggregate spending in the economy.

To learn more about expansionary policy, please check: https://brainly.com/question/25597942