In Response  to the Recession of 2008-2009, the Fiscal Policy of the Federal

question 4

Multiple Choice

In response  to the recession of 2008-2009, the fiscal policy of the federal government was

• A) highly expansionary, and this Keynesian stimulus promoted a rapid recovery.
• B) highly expansionary, but this was largely offset by the Fed's restrictive monetary policy
• C) highly restrictive, but this was largely offset by the Fed's highly expansionary monetary policy
• D) highly expansionary, but the unemployment rate nonetheless remained high during 2010 and 2011

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Definitions:

Balance Sheet

A ledger entry detailing a business’s resources, debts, and equity ownership at a fixed point in time.

Adjustment

A modification made to an account or financial statement to correct an error or reflect new information.

Unearned Revenue

Money received by a company for goods or services that have yet to be delivered or provided.

Rental Payments

Periodic payments made by a lessee to a lessor for the use of a property, equipment, or other asset.