Final answer:
TARP was focused on stabilizing the financial system, while the American Recovery and Reinvestment Act aimed at economic stimulus through tax rebates to households.
Step-by-step explanation:
The main difference between the Troubled Assets Relief Program (TARP) and the American Recovery and Reinvestment Act is that TARP was designed to stabilize the financial system by injecting cash into troubled banks and financial institutions. In contrast, the American Recovery and Reinvestment Act was aimed at stimulating the economy by providing tax rebates to low- and middle-income households to encourage consumer spending. A) TARP focused on economic stimulus B) TARP aimed to stabilize the financial system C) American Recovery and Reinvestment Act addressed toxic assets
D) TARP had no impact on government spending The difference between the Troubled Assets Relief Program (TARP) and the American Recovery and Reinvestment Act is that TARP aimed to stabilize the financial system, while the American Recovery and Reinvestment Act addressed toxic assets. TARP was designed to inject cash into troubled banks and other financial institutions to prevent their collapse, whereas the American Recovery and Reinvestment Act provided tax rebates to low- and middle-income households to stimulate consumer spending.