After the 2008 Financial Crisis, Proponents of Austerity Argued That

question 129

Multiple Choice

After the 2008 financial crisis, proponents of austerity argued that fiscal stimulus was inappropriate because:

• A)cuts in government spending had increased interest rates.
• B)the increase in government spending had raised interest rates.
• C)unemployment remained high after the stimulus was implemented in 2009.
• D)monetary policy is more effective when the economy is close to the zero bound on interest rates.

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Definitions:

Rapid-change Industries

Industries characterized by fast-paced innovation and technological advancements, requiring companies to quickly adapt to maintain competitiveness.