20
QuizMultiple Choice

The Obama Presidency — Quiz

Question 20 • US History

A negative effect of the American Recovery and Reinvestment Act was that

Answer
A
many more business failed.
B
state governments lost funding.
C
the gross domestic product dropped.
D
the federal deficit grew.

Explanation

The American Recovery and Reinvestment Act funded tax cuts, aid to states, and public projects to help the economy recover from the recession. Because the federal government spent more and collected less revenue, the act contributed to a larger federal deficit. The correct choice is that the federal deficit grew.

AI-written and checked against the verified answer.

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