Proponents Argued That Fiscal Stimulus Was Appropriate After the 2008

question 15

Multiple Choice

Proponents argued that fiscal stimulus was appropriate after the 2008 financial crisis because:

• A)austerity would only increase inflation and unemployment.
• B)political instability in the Middle East was causing a depreciation of the euro and the dollar.
• C)the lag associated with automatic stabilizers was too long.
• D)the effectiveness of monetary policy was limited by the zero bound on interest rates.

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Definitions:

Limiting Outsiders' Control

A strategy employed by companies to prevent external parties from gaining too much influence or control over their operations, often through restructuring ownership or voting rights.

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed upon objectives while remaining independent organizations.

Shared Ownership

An arrangement where two or more parties hold vested interests in an asset, sharing both the benefits and responsibilities associated with the asset.

Business Opportunity

A viable and potentially profitable commercial idea or venture that can be exploited for financial gain.