In 2008-2009, Which of the Following Weakened the Demand Stimulus

question 41

Multiple Choice

In 2008-2009, which of the following weakened the demand stimulus effects of expansionary fiscal policy?

• A) the unwillingness of the federal government to run budget deficits
• B) the heavy indebtedness of American households
• C) a high level of household spending on big-ticket items such as houses and cars, which do not promote economic growth
• D) the continuation of the high saving rates on the part of Americans

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Definitions:

Less

A term indicating a smaller amount or degree of something.

Visual Acuity

The clarity or sharpness of vision, measured as the ability to discern letters or numbers at a standardized distance.

Sharpness

The clarity or distinction of an image or sound, or the acuteness of an edge or point.

Vision

The ability to see, interpreted by the brain's processing of signals sent from the eyes.