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Which of the Following Is Not a Reason Why the Stimulus

Question 206

Multiple Choice

Which of the following is not a reason why the stimulus package that the government implemented during the Great Recession of 2007-09 did not have as strong an impact on GDP and
Unemployment as expected?


A) Households had very high debt levels.
B) Consumers raised their saving rates.
C) The stimulus package caused prices to fall in many sectors.
D) The effects of the stimulus package were diffuse and spread thinly among many sectors.

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