A government would choose to increase spending:
A) if households are growing wealthier
B) when interest rates increase.
C) to stimulate the economy.
D) when it expects tax revenues to increase.

Question

Quizplus · Accepted Answer

Increasing government spending can stimulate the economy by creating jobs, increasing demand for goods and services, and boosting economic growth. This is often done during times of recession or sluggish economic growth.

A Government Would Choose to Increase Spending