Which of the Following Correctly Describes Actions of the U

question 83

Multiple Choice

Which of the following correctly describes actions of the U.S.government during the recession of 2008-2009?

• A)It refused to provide banks funding and made no significant changes in government spending.
• B)It refused to provide banks funding but made a large increase in government spending.
• C)It became part owner of some banks but made no significant change in government spending
• D)It became part owner of some banks and made a large increase in government spending.

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Definitions:

Proportional

Characterized by or corresponding in size, degree, or intensity according to a fixed ratio or relationship.

Price Elasticity

A measure indicating how much the quantity demanded of a good responds to a change in its price, often illustrating the sensitivity of demand to price changes.

Relatively Elastic

Characterizes a situation where the quantity demanded of a good or service changes significantly due to a small change in price.

Excise Tax

A tax directly levied on certain goods, services, and activities such as tobacco, alcohol, and gambling.