In 2008-2009, which of the following weakened the demand stimulus effects of expansionary fiscal policy?
A) The unwillingness of the federal government to run budget deficits.
B) The heavy indebtedness of American households.
C) A high level of household spending on big-ticket items such as houses and cars, which do not promote economic growth.
D) The continuation of the high saving rates on the part of Americans.
Correct Answer:
Verified
Q2: Regulatory policies requiring lenders to extend more
Q3: Since 1995, federal regulations have
A) tightened mortgage
Q4: Which of the following contributed to the
Q5: Between 2001 and 2005, sub-prime (including Atl-A)
Q6: Fannie Mae and Freddie Mac's rapid increase
Q7: The mortgage default rate is
A) the percentage
Q8: A sub-prime loan is a loan extended
Q9: When housing prices fell during 2007, the
Q10: During 1979-2005, the mortgage default rate
A) was
Q11: Which of the following accurately describes the
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