Question

How did the federal government anticipate the pro-cyclical fiscal policies of state and local governments when it passed the CARES Act of 2020 stimulus?
Multiple choice question.

It required that state governments match a certain percentage of federal aid to its citizens.

It restricted state and local governments from increasing taxes.

It provided a large amount of aid directly to state and local governments.

It attached legislation to discourage local governments from reducing spending

Answers

GPT-4o mini
The correct answer is:

**It provided a large amount of aid directly to state and local governments.**

The CARES Act was designed to support state and local governments financially in response to the economic downturn caused by the COVID-19 pandemic, helping to mitigate the effects of pro-cyclical fiscal policies.

Related Questions