The Stimulus Package Proposed in 2009 by Newly-Elected President Obama

question 56

Multiple Choice

The stimulus package proposed in 2009 by newly-elected President Obama included

• A)reduced income tax rates for high-income individuals.
• B)reduced levels of federal government aid to state and local governments.
• C)a combination of tax changes and significant increases in federal government spending.
• D)rapid contraction of the overall size of the federal government as a share of GDP.

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Definitions:

Compounded Quarterly

Interest calculated on an investment or loan on a quarterly basis where the interest is added to the principal, resulting in interest on interest for the next quarter.

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest of previous periods, with the process happening every month.

Compounded Semi-annually

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods, applied twice a year.

Equivalent Cash

A term typically used to describe a sum of money that has the same value as another form of financial instrument or asset.