Despite the Fact the Fiscal Policy Is Not Effective When

question 90

Multiple Choice

Despite the fact the fiscal policy is not effective when dealing with recession, Canadian government conducted an expansionary fiscal policy in response to the 2008-2009 financial crisis and recession. What might explain best the rationale for this policy?

• A) Since the US did not conduct an expansionary fiscal policy, Canada had to do it.
• B) Canada had a budget surplus and could afford to conduct an aggressive expansionary policy.
• C) The muted response proved politically unpopular, and it was increasingly apparent that the recession was worldwide in scope, requiring a coordinated response internationally.
• D) No other countries conducted an expansionary fiscal policy, so Canada had to do it.

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Definitions:

Echoic Memory

A component of sensory memory that holds auditory information, allowing sounds to be remembered for short periods after they are heard.

Iconic Memory

A type of visual sensory memory that holds a brief photographic image for a split second before it fades.

Meaningful Conversations

Exchanges that go beyond superficial topics, involving deep and significant subjects that contribute to stronger connections and understanding between the participants.

Iconic Memory

A type of visual memory that holds an image of a visual stimulus for a very short period of time.