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

The answer is D. raise spending to simulate the economy. Expansionary fiscal policy is when the government uses its budgeting tools to add capital to the economy. These tools are either increased spending or tax cuts. They provide consumers and businesses with more money to spend.

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