Many economists would argue that, if the government is to run an expansionary fiscal policy, spending should focus on:
A) consumption goods.
B) imports.
C) infrastructure.
D) competition.

Question

Quizplus · Accepted Answer

Infrastructure spending can create jobs, increase productivity, and enhance a country's long-term economic growth potential. This type of spending can also have multiplier effects, as it may stimulate demand for other goods and services throughout the economy. By contrast, spending on consumption goods or imports may provide only short-term stimulus and may be less effective in promoting sustained economic growth. Spending on competition is not a typical area of government spending.

Many Economists Would Argue That, If the Government Is to Run