Analysis of the Great Depression indicates that
A) even though monetary and fiscal policies were highly expansionary, they were unable to offset the economic plunge.
B) even though monetary policy was expansionary, restrictive fiscal policy dominated during the 1930s.
C) a reduction in tax rates could not prevent the economic downturn from spiraling into a depression.
D) the severity of the economic decline, if not its onset, was the result of perverse monetary, fiscal and regulatory policies.

Question

Quizplus · Accepted Answer

The severity of the Great Depression was exacerbated by poor monetary, fiscal, and regulatory policies, which failed to stabilize the economy and instead worsened the economic decline.

Analysis of the Great Depression Indicates That