Which of the Following Is True About the Recession of the Early

question 87

Multiple Choice

Which of the following is true about the recession of the early 1990s?

• A)The recession was triggered by Iraq's invasion of Kuwait
• B)Because of large federal deficits, policy makers were reluctant to adopt discretionary fiscal policy to revive the economy
• C)President George H. W. Bush advocated a passive approach
• D)Presidential candidate Bill Clinton advocated an active approach
• E)All of the answers are correct

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Definitions:

Revenue Bonds

Bonds issued by municipalities or other governmental entities to finance projects that generate income, with the earnings used to repay bondholders.

Toll Road

A public or private roadway for which a fee is charged to use, typically used to fund maintenance and new infrastructure.

Produce Revenue

The process of generating income from business activities.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to finance the national debt.