Question

a government might enact expansionary spending when it is trying to
slow an economic expansion.
lower a budget deficit.
decrease aggregate demand for goods.
increase aggregate demand for goods.

Explanation:

Expansionary spending by the government is a fiscal policy tool. Its purpose is to boost economic activity. When the government spends more (or reduces taxes), it aims to increase the total demand for goods and services in the economy, which is called aggregate demand. Let's analyze the options:

• "slow an economic expansion" is incorrect because expansionary spending is used to stimulate a slow economy, not slow an expansion.
• "lower a budget deficit" is incorrect as expansionary spending (increasing spending or cutting taxes) usually increases the budget deficit, not lower it.
• "decrease aggregate demand for goods" is incorrect because expansionary policies are meant to increase, not decrease, demand.
• "increase aggregate demand for goods" is correct. Expansionary spending puts more money in the hands of consumers or businesses, leading them to spend more, thus increasing the total (aggregate) demand for goods and services.

Answer:

increase aggregate demand for goods.