Which of the following represents a government action aimed at stimulating demand by acting as a customer?

• A. Encourage improvements
• B. Create enterprise culture
• C. Build infrastructure
• D. Stimulate demand by acting as customer

Answer: (D)

The key idea is that demand can be boosted by the government when it buys goods and services—the government acts as a purchaser, injecting demand directly into the economy. This procurement effect raises income for businesses and workers, which in turn stimulates further spending and activity, a classic example of a demand-side policy with multiplier effects.

This option best captures that mechanism: it describes stimulating demand specifically by the government using its purchasing power. The other choices describe actions that influence the business environment or supply side (improving efficiency, fostering entrepreneurship, or infrastructure spending) but do not explicitly portray the government as a customer driving immediate demand.