Which of the Following Contributed to the Weak Recovery from the 2008-2009

question 39

Multiple Choice

Which of the following contributed to the weak recovery from the 2008-2009 recession?

• A)Government stimulus spending that was largely temporary and often directed toward unproductive activities.
• B)The restrictive monetary policy followed by the Fed.
• C)The tax increases instituted by a Congress intent on balancing the budget.
• D)The failure of the Fed to provide the banking system with sufficient reserves for the extension of new loans.

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Definitions:

2005 Bankruptcy Reform Act

Legislation officially known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, designed to overhaul U.S. bankruptcy law by adding means testing to discourage Chapter 7 filings and to reduce bankruptcy fraud.

Federal District

A division within a country, distinct from the states or provinces, that usually encompasses the nation's capital city and has different governing laws.

Economic Downturn

A period of reduced economic activity characterized by declining GDP, increased unemployment, and lower consumer spending.

Bankruptcy Reform Act

Legislation intended to overhaul the bankruptcy system, typically making it more difficult for individuals to file for bankruptcy and to discharge certain types of debt.