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L-Unit 2 Part 2 Exam:Fiscal &Monetary Increasing spending on highways or increasing spending on defense are: Contractionary Fiscal actions Contractionary Monetary actions Expansionary Fiscal actions Expansionary Monetary actions

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Increasing spending on highways or increasing spending on defense are examples of:**Expansionary Fiscal actions**This is because these actions involve government spending, which is a tool of fiscal policy aimed at stimulating economic growth by increasing aggregate demand.