The 2009 American Recovery and Reinvestment Act was designed to stimul

QUESTION

The 2009 American Recovery and Reinvestment Act was designed to stimulate economic growth in the Great Recession. The act was a combination of tax cuts as well as government spending funded through borrowing. What is this is an example of?

A) regulatory policy
B) fiscal policy
C) monetary policy
D) central planning
E) the welfare state

ANSWER

Answer: B
Explanation: B) Governments can borrow money and raise or lower taxes to help manage the economy.