a negative effect of the american recovery and reinvestment act was that\nthe federal deficit grew.\nmany…

a negative effect of the american recovery and reinvestment act was that\nthe federal deficit grew.\nmany more business failed.\nstate governments lost funding.\nthe gross domestic product dropped.

a negative effect of the american recovery and reinvestment act was that\nthe federal deficit grew.\nmany more business failed.\nstate governments lost funding.\nthe gross domestic product dropped.

Answer

Answer:

A. the federal deficit grew.

Brief Explanations:

The American Recovery and Reinvestment Act involved significant government spending. When the government spends more (especially in large - scale stimulus packages like this), it often has to borrow money. Borrowing to finance spending increases the federal deficit.

  • Option B: The act was intended to support businesses (through things like grants, tax incentives for hiring etc.), so it's unlikely that many more businesses failed as a direct negative effect.
  • Option C: The act actually provided funding to state governments for various projects (e.g., infrastructure, education).
  • Option D: The purpose of the act was to boost the economy, and an increase in government spending (a component of GDP calculation in the expenditure approach (GDP = C + I+G+(X - M)), where (G) is government spending) would be expected to increase GDP, not drop it.