When are governments most likely to engage in stimulus spending?
A) when their populations age
B) when they are in collective bargaining
C) in good economic times
D) during economic downturns

Question

Quizplus · Accepted Answer

Governments are most likely to engage in stimulus spending during economic downturns to stimulate the economy by increasing demand through government spending and tax cuts, aiming to reduce unemployment and avoid recession.

When Are Governments Most Likely to Engage in Stimulus Spending