Multiple Choice
When the economy entered a serious recession in 2008, the response of the U.S. government was to institute a $700 billion bailout plan, pursue other heavy deficit spending, and take on unusually large liabilities through bond and money market fund guarantees. This is an example of:
A) sound finance as fiscal policy.
B) functional finance and expansionary fiscal policy.
C) fiscal policy that employs automatic stabilizers as the primary means of economic stabilization.
D) procyclical fiscal policy.
Correct Answer:
Verified
Correct Answer:
Verified
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