Arrange the following steps in the correct order for implementing an expansionary policy to stimulate investment during a recession: A) Decrease interest rates, B) Increase consumer spending, C) Encourage borrowing, D) Improve economic activity.

To implement an expansionary policy during a recession, the first step is to decrease interest rates. Lower interest rates make it cheaper for people and businesses to borrow money. Once borrowing becomes easier, it encourages more people to take loans, which is step three. As businesses and consumers borrow more, they can spend more, leading to increased consumer spending, which is step two. This overall increase in spending helps to improve economic activity, completing the process with step four.