The 2009 fiscal stimulus package did not work ________.
A)because rising interest rates nullified increased expenditures
B)because government spending rose too quickly and too briefly
C)but it probably prevented the IS curve from shifting further to the left
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

While there is debate about the effectiveness of the 2009 fiscal stimulus package, it is widely agreed that it helped prevent the IS curve (which shows the relationship between interest rates and real GDP) from shifting further to the left. This suggests that the stimulus package at least had some positive impact on the economy. The other options given are either incorrect or incomplete.

The 2009 Fiscal Stimulus Package Did Not Work ________