The 2009 Fiscal Stimulus Package Did Not Work ________

question 35

Multiple Choice

The 2009 fiscal stimulus package did not work ________.

• A)in that the IS curve did not shift to the right
• B)because most of the intended increase in government spending took too long to kick in
• C)because the increase in government spending was not enough to offset the decline in autonomous expenditure
• D)all of the above
• E)none of the above

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Definitions:

365-Day Year

A reference to a full calendar year consisting of 365 days, typically excluding leap years which have 366 days.

Exact Simple Interest Rate

The percentage of the principal amount (the initial sum of money borrowed or invested) that is paid as interest for a specified period, not accounting for compound interest.

365-Day Year

A conventional method used in finance to standardize the number of days in a year for interest calculation purposes.

Exact Simple Interest

Interest calculated linearly on the principal amount, where the calculation is based precisely on the time period involved.