Question

How did President Obama's American Recovery and Reinvestment Act

(ARRA) help the U.S. economy recover from the Great Recession?
A. It prevented the complete collapse of the auto and banking
industries by providing controversial bailouts.
B. It committed billions of dollars of federal tax money to provide
financial relief to individuals and create jobs.
C. It prevented America's large banks from failing following the
subprime mortgage crisis of 2007 and 2008.
OD. It committed billions of dollars of federal tax money to provide
financial relief to small businesses.

Answer 1

The ARRA contributed to economic recovery by injecting $800 billion into the economy through tax rebates for households and fiscal stabilization funds for states, aiding in job creation and stimulating consumer spending.

Step-by-step explanation:

President Obama's American Recovery and Reinvestment Act (ARRA) helped the U.S. economy recover from the Great Recession by committing nearly $800 billion to stimulate economic growth and job creation. This Act included tax rebates to low- and middle-income households, aimed at encouraging consumer spending, and provided fiscal stabilization funds to aid states and localities facing budget deficits and layoffs. Additionally, the ARRA's wide-ranging initiatives helped prevent layoffs and wage cuts, especially within struggling industries like auto manufacturers, contributing to the sector's profitability by 2011.

Answer 2

The correct answer is B. The American Recovery and Reinvestment Act (ARRA) committed billions of dollars of federal tax money to provide financial relief to individuals and create jobs. The act aimed to stimulate economic growth and recovery by investing in various sectors such as infrastructure, education, healthcare, renewable energy, and technology. The funds were used to fund projects and initiatives that would generate employment opportunities and stimulate consumer spending, ultimately helping to revive the U.S. economy following the Great Recession.