In 2008-2009, Which of the Following Weakened the Demand Stimulus

question 145

Multiple Choice

In 2008-2009, which of the following weakened the demand stimulus effects of expansionary fiscal policy?

• A) The unwillingness of the federal government to run budget deficits.
• B) The heavy indebtedness of American households.
• C) A high level of household spending on big-ticket items such as houses and cars, which do not promote economic growth.
• D) The continuation of the high saving rates on the part of Americans.

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Definitions:

Fovea

The area roughly at the retina’s center where cones are plentiful and visual acuity is greatest.

Peripheral Acuity

The ability to see and recognize details in the outer regions of the visual field, away from the center of gaze.

Eye Muscles

The six muscles that control eye movement, allowing the eye to move and focus in different directions.

Paralyzed

The state of being unable to move or function in one or more parts of the body, usually as a result of illness or injury to the nervous system.