Which of the Following Is Not a Reason Why the Stimulus

question 206

Multiple Choice

Which of the following is not a reason why the stimulus package that the government implemented during the Great Recession of 2007-09 did not have as strong an impact on GDP and
Unemployment as expected?

• A) Households had very high debt levels.
• B) Consumers raised their saving rates.
• C) The stimulus package caused prices to fall in many sectors.
• D) The effects of the stimulus package were diffuse and spread thinly among many sectors.

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Definitions:

Volcanic Mudflows

Rapidly flowing mixtures of water, volcanic ash, and other debris, known as lahars, which can occur during volcanic eruptions.

Hot Fragments

Pieces of molten or semi-molten material, often expelled during volcanic eruptions, including lava bombs or volcanic ash.

Mantle Plume

A localized column of hot rock rising through the mantle, thought to cause volcanic activity and rifting in the Earth's crust.

Flood Eruptions

Volcanic eruptions characterized by the large-scale outpouring of lava onto the surface, creating extensive lava flows.