Question

How do entrepreneurs cause economic expansion?

by introducing new products that encourage consumer spending
by using competition to drive down the prices of consumer goods
by replacing government-owned industries with consumer-friendly ones
by reducing exports through increasing the availability of locally produced goods

Answer 1

I think the first option because the person above said but im not sure I have to submit my test.

Step-by-step explanation:

Answer 2

The correct answer is by introducing new products that encourage consumer spending

Explanation: An economic expansion may allow new entrepreneurs to invest more, generating business for other companies.

New businesses are also more affordable in times of economic growth, and much more limited in a recession, just as companies need them most.