-The U.S. fiscal policy implemented in 2008 was an attempt to
A) give billions of dollars to businesses and low- and middle-income Americans in order to stimulate business investment and consumption expenditure, and thereby increasing AD.
B) give billions of dollars to businesses and low- and middle-income Americans in order to stimulate business investment and consumption expenditure, and thereby increasing SAS.
C) decrease interest rates in order to stimulate business investment and consumption expenditure, and thereby increasing AD.
D) decrease the exchange rate in order to boost net exports, and thereby increasing AD.

Question

-The U.S. fiscal policy implemented in 2008 was an attempt to
A) give billions of dollars to businesses and low- and middle-income Americans in order to stimulate business investment and consumption expenditure, and thereby increasing AD. 
B) give billions of dollars to businesses and low- and middle-income Americans in order to stimulate business investment and consumption expenditure, and thereby increasing SAS. 
C) decrease interest rates in order to stimulate business investment and consumption expenditure, and thereby increasing AD. 
D) decrease the exchange rate in order to boost net exports, and thereby increasing AD.

Quizplus · Accepted Answer

The U.S. fiscal policy in 2008, particularly the stimulus packages, aimed to inject billions of dollars into the economy by supporting businesses and providing financial aid to low- and middle-income Americans. This was intended to stimulate business investment and consumer spending, thereby increasing aggregate demand (AD).

-The US Fiscal Policy Implemented in 2008 Was an Attempt to to