Question 16 • 11011de2 CONNECTED Fall 2026 NM-US History and Geography S2
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 through tax cuts, the federal deficit grew. The act was intended to support businesses and increase economic activity, so business failures and a falling GDP were not its negative effects.
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