During the Great Recession, Policy Makers Were Not as Worried

Multiple Choice

During the Great Recession, policy makers were not as worried as usual about the lags associated with discretionary fiscal policy because:

A) the severity of the recession led Congress to pledge to pass a bipartisan spending package immediately.
B) businesses had pledged to respond quickly to the lower interest rates.
C) the economy was likely to be depressed for a long time, so the lags were not likely to be as destabilizing as usual.
D) the financial sector of the economy was not affected by the recession and was ready to make loans to consumers and businesses.