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

question 90

Multiple Choice

(Last Word) In response to the Great Recession, the federal government engaged in significant deficit-funded spending.While it kept the recession from getting worse, and did result in some positive economic growth, 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)Despite the fiscal stimulus, aggregate demand continued to shift to the right.
• B)The fiscal stimulus caused a significant leftward shift of aggregate supply.
• C)Offsetting monetary policy caused the aggregate demand to remain virtually unchanged, meaning that all gains in output came from aggregate supply shifts.
• D)The fiscal stimulus shifted aggregate demand to the right, but not enough to restore full employment.

Examine methods and techniques for modifying behaviors and habits.

Understand the concept of emotional intelligence and its application in interpersonal relationships.

Recognize and interpret nonverbal cues in communication.

Distinguish between various types of responses and their effects on communication (e.g., confirming vs. disconfirming).

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Definitions:

Discount at Issuance

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Effective Rate of Interest

The actual cost of borrowing or the actual return on savings, taking into account the effect of compounding interest.

Straight-Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal installments.

Cash Paid Out

Money that is spent or disbursed by a business, often related to operating expenses, purchasing assets, or repaying liabilities.