(Last Word) in Response to the Great Recession, the Federal

question 167

Multiple Choice

(Last Word) In response to the Great Recession, the federal government engaged in significant deficit-funded spending, but it did not fully achieve the desired result.Which of the following best explains why the fiscal policy actions fell short of their objective?

• A)Monetary policy counteracted fiscal policy, keeping the unemployment rate from falling as much as intended.
• B)Consumers did not respond to the fiscal stimulus as well as hoped, as they put more income into saving and repaying debt.
• C)Although the fiscal stimulus increased consumer spending significantly, it mostly went to purchase foreign-produced goods and services.
• D)The fiscal stimulus caused massive inflation that further disrupted economic activity.

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Definitions:

Substance Abuse

The harmful use of substances, including alcohol and drugs, leading to addiction or other negative outcomes.

Rehabilitation

The process of helping a person achieve the highest level of function, independence, and quality of life possible after illness or injury.

Ineffective Breathing Pattern

A respiratory condition where there is an insufficient exchange of air, leading to inadequate oxygen intake or carbon dioxide elimination.

Opioid Intoxication

The acute state of poisoning resulting from the excessive consumption of opioids, leading to altered mental state, respiratory depression, and potential fatality.