The USFiscal Stimulus in 2009 Did Not Increase GDP Substantially Because

question 82

Multiple Choice

The U.S.fiscal stimulus in 2009 did not increase GDP substantially because

• A)the Federal Reserve was decreasing interest rates and real-world estimates for the multiplier might be less than one.
• B)the Federal Reserve was increasing interest rates and real-world estimates for the multiplier might be less than one.
• C)state governments were decreasing spending and real-world estimates for the multiplier might be less than one.
• D)state governments were increasing spending and real-world estimates for the multiplier might be less than one.