The U.S. fiscal policy implemented in 2008 was an attempt to
A) give billions of dollars to businesses and low- and middle-income Americans in order stimulate business investment and consumption expenditure, thereby increasing SAS.
B) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing AD.
C) decrease the exchange rate in order to boost net exports, thereby increasing AD.
D) give billions of dollars to businesses and low- and middle-income Americans in order stimulate business investment and consumption expenditure, thereby increasing AD.

Question

Quizplus · Accepted Answer

The U.S. fiscal policy implemented in 2008 involved giving billions of dollars to businesses and low- and middle-income Americans to stimulate business investment and consumption expenditure, thereby increasing aggregate demand (AD). This was done through measures such as tax rebates, infrastructure spending, and federal aid to state and local governments. The goal was to jumpstart the economy and prevent a severe recession following the financial crisis.

The US Fiscal Policy Implemented in 2008 Was an Attempt to to