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.

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Definitions:

Risk

The potential for loss or the uncertainty regarding the outcome of an action or decision.

United States

A country located primarily in North America, composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Entrepreneurship

The process of designing, launching, and managing a new business venture, typically characterized by innovation, risk-taking, and the pursuit of profit.

Tolerance for Ambiguity

The capacity to remain comfortable and composed in situations that are unclear, uncertain, or have unpredictable outcomes.