Why would the government decrease spending abroad?

Question

could include effects at home or investments in companies abroad, etc.

Answer 1

Government may reduce spening abroad to put more money into its own countries economy.


Increase G and increase T.

Answer 2

when you buy a product, money is leaving your household. same goes for a government. when they import, they are causing money to leave their economy. a government may switch from spending abroad to spending at home in order to create jobs within its own economy.