In early 2008, the housing crisis and rising oil prices increased the risk of recession in the United States. What fiscal policy action was taken by Congress and the president to counter these events?
A) The Federal Reserve cut its target for the federal funds rate.
B) There was an increase in government spending on defense and unemployment compensation.
C) Taxpayers were given rebates on taxes they already paid.
D) Income taxes were raised to reduce the federal budget deficit and reduce interest rates.
Answer: C
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One World View article is titled "Glaring Inequalities." Of the countries listed, the greatest inequality in the distribution of income is likely to occur in
A. Canada. B. Namibia. C. Sweden. D. The United States.
The saving-investment diagram shows that a higher real interest rate due to a leftward shift of the saving curve
A. raises the profitability of investment for firms. B. causes the amount of firms' investment to increase. C. causes the total amounts of saving and investment to fall. D. increases the total amount of saving because of the increase in the real interest rate.
In the short run, the price level is determined primarily by the supply of goods
Indicate whether the statement is true or false
Select the correct statement
a. Qualitative forecasts give the direction of change. b. Quantitative forecasts give the exact amount or exact percentage change. c. Diffusion forecasts use the proportion of the forecasts that are positive to forecast up or down. d. Surveys are a form of qualitative forecasting. e. all of the above are correct.