Which of the following contributed to the weak recovery from the 2008-2009 recession?
A) constant policy changes that generated uncertainty and undermined private investment
B) the restrictive monetary policy followed by the Fed
C) the tax increases instituted by a Congress intent on balancing the budget
D) the inability of the federal government to borrow because of the sharply higher interest rates

Question

Quizplus · Accepted Answer

Constant policy changes generated uncertainty, which is a major factor in undermining private investment. This uncertainty made it more difficult for businesses to plan for the future and make long-term investments, thereby hindering the economic recovery. The other options (B, C, and D) are not correct because the Fed's monetary policy was actually quite accommodative, taxes were not increased (in fact, they were lowered in some cases), and the federal government was able to borrow at historically low interest rates.

Which of the Following Contributed to the Weak Recovery from the 2008-2009