The 2009 fiscal stimulus package was passed ________.
A)to prevent the real interest rate from rising
B)to shift the IS curve to the left
C)to raise aggregate output at any interest rate
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The 2009 fiscal stimulus package was designed to raise aggregate output at any interest rate by increasing government spending and cutting taxes, which shifts the IS curve to the right, not to the left, and aims to prevent the economy from falling into a deeper recession rather than specifically targeting the real interest rate.

The 2009 Fiscal Stimulus Package Was Passed ________