A Fiscal Stimulus Was Initiated by President Obama in Response

question 20

Multiple Choice

A fiscal stimulus was initiated by President Obama in response to the economic downturn of 2008-2009.At that time,the president's economists estimated the multiplier to be

• A)3.2 for government purchases and 2.0 for tax cuts.
• B)2.4 for government purchases and 1.4 for tax cuts.
• C)1.6 for government purchases and 1.0 for tax cuts.
• D)1.6 for government purchases and 0.4 for tax cuts.

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Definitions:

Erik Erikson

was a developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, emphasizing eight stages of human development.

Crises

Situations of intense difficulty, trouble, or danger that require immediate decisions or actions.

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his pioneering work in child development and his theory of cognitive development.

Formal Operational

The stage of cognitive development, according to Jean Piaget, in which individuals become capable of abstract thinking and hypothetical reasoning.