Which of the Following Policy Combinations Was Used by the Government

question 76

Multiple Choice

Which of the following policy combinations was used by the government during the financial crisis of 2007-2009 in the United States?

• A) Income tax rates were increased, and payroll taxes were reduced.
• B) Payroll tax rates were increased, and government spending was reduced.
• C) The federal funds rate was decreased, and the quantity of required reserves was increased.
• D) A combination of both fiscal and monetary policies was used.

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Definitions:

Ataque De Nervios

A cultural syndrome primarily seen in Latin American communities, characterized by symptoms of intense emotional upset, including crying, trembling, and sensations of heat in the chest and head.

Central American

Pertaining to the geographic region of Central America, which includes the countries situated between Mexico and South America.

Guatemalan Woman

Refers to a female individual from Guatemala, a country in Central America.

Nervios

A culturally specific syndrome found in Latin American communities, characterized by emotional distress and somatic symptoms like headaches and stomachaches, often in response to stress.