After the 2008 Financial Crisis, Proponents of Austerity Argued That

Multiple Choice

After the 2008 financial crisis, proponents of austerity argued that fiscal stimulus was inappropriate because:

A) cuts in government spending had increased interest rates.
B) the increase in government spending had raised interest rates.
C) unemployment remained high after the stimulus was implemented in 2009.
D) monetary policy is more effective when the economy is close to the zero bound on interest rates.