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

question 397

Multiple Choice

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

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

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Definitions:

FICA-OASDI Tax

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance tax; a payroll tax that funds Social Security and Medicare in the United States.

FICA-Medicare Tax

A payroll tax deducted from employee wages and paid by both employees and employers to fund Medicare.

Federal Income Tax

A tax levied by the federal government on yearly income earned by individuals, businesses, and other organizations.

Workers' Compensation

An insurance program that provides benefits to employees who suffer job-related injuries or illnesses.