The American Recovery and Reinvestment Act, signed by President Obama in 2009, was intended to _____
A) increase tax revenues by increasing the tax rate.
B) balance the budget by increasing defense spending and increasing taxes.
C) stimulate the economy by increasing government spending in order to increase aggregate supply.
D) stimulate the economy by decreasing taxes in order to increase aggregate supply.
E) stimulate aggregate demand through tax benefits and spending programs.

Question

Quizplus · Accepted Answer

The American Recovery and Reinvestment Act was intended to stimulate the economy through tax benefits and spending programs, which would increase aggregate demand. This was achieved by providing tax breaks for individuals and businesses, funding for infrastructure projects, and aid to state and local governments. The goal was to create jobs and boost economic growth in the aftermath of the 2008 financial crisis.

The American Recovery and Reinvestment Act, Signed by President Obama