Question

A negative effect of the American Recovery and Reinvestment Act was that

Answer 1

Answer:  

The American Recovery and Reinvestment Act (ARRA) negative effect was that greater part of the money had to be borrowed on.  

Explanation:  

It was on the whole approved by President Barack Obama in the year 2009. It was complete based on the stimulus package that was somehow released with the aim of preventing some jobs destruction and also the creation of the new ones. It also boost economic recovery. Borrowing of the greater money was the negative effect. National debt will be increased.

Answer 2

The American Recovery and Reinvestment Act (ARRA) was approved by President Barack Obama in 2009, and consisted on a stimulus package released with the aim of preventing the destruction of jobs, fostering the creation of new ones, and boosting the aggregate demand as a mechanism for economic recovery. Therefore, recovery from the recession of 2007-2009 was sought through the Keynesian way.

One negative effect of  the spending schedule imposed by the ARRA, was that a great part of the money had to be borrowed. National debt was increased and this led to a deficit situation.