Which of the following contributed to the severity of the Great Depression in the 1930s?
A) large increases in tax rates in 1932 and again in 1936
B) large increases in the money supply during the early 1930s
C) a reduction in tariffs protecting many U.S. industries
D) a substantial tax rate reduction, which led to large deficits and high interest rates during the early 1930s

Question

Quizplus · Accepted Answer

The large increases in tax rates in 1932 and again in 1936 reduced consumer spending and investment, worsening the economic downturn.

Which of the Following Contributed to the Severity of the Great