Asked by Ashley Mayer on Jun 29, 2024

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Verified

Due to the implementation of the Troubled Asset Relief Program and the American Recovery and Reinvestment Act,the Federal budget deficit _____.

A) doubled
B) tripled
C) stayed the same
D) decreased significantly
E) quadrupled

Federal Budget Deficit

A flow variable measuring the amount by which federal government outlays exceed federal government revenues in a particular period, usually a year.

Troubled Asset Relief Program

A U.S. government program created in 2008 to purchase toxic assets and inject capital into banks to stabilize the financial system.

American Recovery

Refers to economic recovery efforts in the United States, particularly those following the Great Recession, including various fiscal and monetary policies aimed at restoring economic growth.

  • Examine the impact of government financial policies on the economy, focusing on tax and expenditure initiatives.
  • Determine the impact monetary and fiscal regulations have on inflation, levels of unemployment, and the economy at large.
verifed

Verified Answer

DC
Dayrine CabrejaJul 03, 2024
Final Answer :
A
Explanation :
The Federal budget deficit doubled due to the implementation of the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act, as these programs involved significant government spending to stabilize the financial system and stimulate the economy during the financial crisis and recession.