The "Buy American" Provision in the 2009 Stimulus Package Required

Multiple Choice

The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent.In the market for steel, the "Buy American" provision would ________ the price of steel in the United States and ________ the quantity of steel demanded in the United States.

A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease