What fiscal policies did the government implement in response to the 2008-2009 recession? Can we be certain that these policies were effective? Explain
The government cut taxes and raised expenditures. Increases in expenditures included "shovel-ready projects," aid to state governments, and increases in unemployment insurance.
We can't know for sure if fiscal policy was effective because we don't know what would have happened if it had not been used. However, we do know that the Great Depression was much more severe.
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In bringing an economy out of a recession, a government will often resort to ________ fiscal policies, which often results in budget deficits
A) conservative B) innovative C) contractionary D) expansionary
A reduction of the discount rate by the Federal Reserve Banks has the direct effect of
A) making it less costly for commercial banks to borrow from the Fed. B) making it more costly for the Treasury to finance deficits. C) increasing commercial bank reserves. D) increasing the stock of money. E) doing all of the above.
The United States Post Office
A) has a monopoly in the provision of first-class mail service. B) can safely ignore the prices for mail services charged by its rivals such as FedEx and UPS. C) is an example of a monopoly that results from the ownership of a key resource: first class mail service. D) faces no competition for its mail services.
The real internal rate of return on a college education is about
A) 0%. B) 2.5%. C) 6.9%. D) 15%.