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

question 254

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.

---

Definitions:

Electrolyte Disorders

Medical conditions characterized by imbalances in the levels of electrolytes in the body, which can affect various bodily functions.

Therapeutic Response

A patient's improvement or recovery as a result of a specific treatment regimen.

Social Support

The assistance and comfort received from friends, family, and others, which is crucial for mental and physical health, especially during times of stress or illness.

Divorced

The legal termination of a marital union, leaving both parties legally able to marry someone else.