The US Fiscal Policy Implemented in 2008 Was an Attempt to to

question 383

Multiple Choice

The U.S. fiscal policy implemented in 2008 was an attempt to

• A) give billions of dollars to businesses and low- and middle-income Americans in order stimulate business investment and consumption expenditure, thereby increasing SAS.
• B) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing AD.
• C) decrease the exchange rate in order to boost net exports, thereby increasing AD.
• D) give billions of dollars to businesses and low- and middle-income Americans in order stimulate business investment and consumption expenditure, thereby increasing AD.

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Definitions:

Journal Entries

The record of financial transactions in the books of accounts in chronological order, showing the accounts and amounts debited and credited.

Significant Influence

The power to participate in the financial and operating policy decisions of a business, without controlling it.

Common Shares

Equity investments that represent ownership in a company, giving holders voting rights and a share in the company's profits through dividends.

Equity Method

An accounting method used to assess the profits earned through the investment in another company by updating the investment's value based on the investee's net income or loss.