Homework SourseThe economic stimulus package which represented the approval
The economic stimulus package which represented the approval of the ARRA funds by the Obama administration is an example of
A. A classical fiscal policy which revindicates the efficiency of lowering taxes on the rich and large corporations
B. A monetarist monetary policy for equipping the growth of money supply to the growth of the real gdp
C. A keynesian fiscal policy which revindicated the greater power of the multiplier of government spending over lowering tax incentives
D. None of the above
The economic stimulus package which represented the approval of the ARRA funds by the Obama administration is an example of
A. A classical fiscal policy which revindicates the efficiency of lowering taxes on the rich and large corporations
B. A monetarist monetary policy for equipping the growth of money supply to the growth of the real gdp
C. A keynesian fiscal policy which revindicated the greater power of the multiplier of government spending over lowering tax incentives
D. None of the above
A. A classical fiscal policy which revindicates the efficiency of lowering taxes on the rich and large corporations
B. A monetarist monetary policy for equipping the growth of money supply to the growth of the real gdp
C. A keynesian fiscal policy which revindicated the greater power of the multiplier of government spending over lowering tax incentives
D. None of the above
Solution
The economic stimulus package which represented the approval of the ARAA funds by the Obama administration was done in response to the great recession.It was aimed at creating more jobs and invest heavily in infrasructure,education,health and energy sector.
The stimulus package was based on the Keynesian economic theory which states that the government should increase its public spending to offset the decrease in private spending in order to control recession.
Therefore option (C)
