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

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.

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