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

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