Which of the Following Contributed to the Weak Recovery from the 2008-2009

question 11

Multiple Choice

Which of the following contributed to the weak recovery from the 2008-2009 recession?

• A) The restrictive monetary policy followed by the Fed.
• B) Government spending was increased by only a small amount.
• C) The temporary nature of the tax rebates and spending increases created uncertainty and exerted only a weak impact on aggregate demand.
• D) The budget deficits were too small to exert much impact on aggregate demand, output, and employment.