Question

Based on what you have read, choose each response below that correctly describes a target area of ARRA.

Check all of the boxes that apply.

federal deficit

state governments

housing market

road and bridge repair

middle-class tax cuts

Answer 1

- state governments — Yes. ARRA provided large grants to states to avoid layoffs and fund services.
- housing market — Yes. ARRA included programs and funding to stabilize housing and address foreclosures/rehab of foreclosed homes.
- road and bridge repair — Yes. Infrastructure spending on roads, bridges and transit was a major part of ARRA.
- middle-class tax cuts — Yes. ARRA included tax relief (e.g., Making Work Pay) targeted at middle‑income taxpayers.

Do not check: federal deficit — ARRA increased short‑term federal deficits as it injected spending into the economy rather than cutting the deficit.