Question

What is an example of government expenditure that positively affects the economy

A)The government increases tariffs with foreign nations, resulting in a trade freeze
B)The government opens a military base in a small town, increasing demand for local products.
C) The government increases corporate taxes, causing prices of goods to increase.
D) The government increases regulations on the airline industry increasing barriers to entry.

Answer 1

The correct answer is letter B.

Explanation: Government Expenditure are things that will help economy to increase and have a good result in the total of all.