Which of the following is not a reason why the stimulus pack

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? Multiple Choice Households had very high debt levels Consumers raised their saving rates. The stimulus package caused prices to fall in many sectors.

Solution

Except it caused the prices to fall. The stimulus package failed because it did not increase consumption, because householdss had huge debt and saved more.