Question

question 4 of 20

how did president obamas american recovery and reinvestment act (arra) help the u.s. economy recover from the great recession?

a. it provided immediate aid to americans in the short term and supported economic recovery in the long term.
b. it committed billions of dollars of federal tax money to provide financial relief to small businesses.
c. it prevented americas large banks from failing following the subprime mortgage crisis of 2007 and 2008.
d. it prevented the complete collapse of the auto and banking industries by providing controversial bailsouts.

Explanation:

Analyze the purpose of the American Recovery and Reinvestment Act (ARRA)

The American Recovery and Reinvestment Act of 2009 (ARRA) was an economic stimulus package enacted by the 111th United States Congress and signed into law by President Barack Obama in February 2009. Its primary goals were to save and create jobs, provide temporary relief programs for those most affected by the recession, and invest in infrastructure, education, health, and renewable energy.

Evaluate the given options

• Option A states that ARRA provided immediate aid to Americans in the short term (through tax cuts, unemployment benefits, and social welfare expansion) and supported economic recovery in the long term (through investments in infrastructure, education, and green energy). This aligns directly with the dual-pronged design of the stimulus package.
• Option B is too narrow, focusing primarily on small businesses.
• Option C and Option D describe the Emergency Economic Stabilization Act of 2008 (which created the Troubled Asset Relief Program, or TARP) and the auto industry bailout, which were initiated under the George W. Bush administration in late 2008 to prevent financial sector collapse.

Select the correct option

Option A is the most accurate description of how the ARRA was designed to help the U.S. economy recover.

Answer:

• (A) It provided immediate aid to Americans in the short term and supported economic recovery in the long term. (Correct answer)
• (B) It committed billions of dollars of federal tax money to provide financial relief to small businesses.
• (C) It prevented America's large banks from failing following the subprime mortgage crisis of 2007 and 2008.
• (D) It prevented the complete collapse of the auto and banking industries by providing controversial bailsouts.