During the Great Depression, fiscal policy focused primarily on
A) keeping taxes low.
B) raising taxes during an economic expansion and lowering taxes during a recession.
C) trying to balance the federal budget.
D) running budget deficits in order to stimulate real output and GDP.

Question

Quizplus · Accepted Answer

During the Great Depression, the U.S. government initially focused on balancing the federal budget, which involved reducing spending and maintaining or increasing taxes, rather than using fiscal policy to stimulate the economy through deficits.

During the Great Depression, Fiscal Policy Focused Primarily on