How would an increase in total expenditures affect the nation's economy? A. It would cause an expansion. B. It would cause stagnation. C. It would cause a recession. D. It would cause a trade surplus.

Respuesta :

Answer:

A. It would cause an expansion

Explanation:

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An increase in total expenditures affect the nation's economy as It would cause an expansion. Hence , Option (A) is correct.

What is Total Expenditure ?

Total Expenditure is the sum of the price paid for one or more products or services multiplied by the amount of each item purchased.

Expansion of total expenditure is that extends the capacity of an existing asset to provide benefits to new users at the same standard as is provided to existing beneficiaries.

Therefore, An increase in total expenditures affect the nation's economy as It would cause an expansion. Hence , Option (A) is correct.

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