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

---

Definitions:

Plant Foods

Refers to foods derived from plants, including vegetables, fruits, whole grains, nuts, seeds, and legumes.

Folic Acid

A B-vitamin that is crucial for healthy cell growth and development, especially significant during pregnancy for the prevention of neural tube defects.

Pregnant

The state of carrying a developing embryo or fetus within the female body, typically lasting around 40 weeks in humans.

Alpha-Linolenic Acid

An essential omega-3 fatty acid found in seeds and nuts, important for heart health and maintaining proper cellular function.