Which of the Following Did Not Contribute to the Severity
Which of the following did not contribute to the severity of the Great Depression?
A)a sharp reduction in the money supply during the early 1930s
B)a large tax increase (to balance the budget)in the early 1930s
C)substantial increases in the tariff rates on imported goods
D)a reduction in government expenditures and a substantial cut in personal income tax rates during 1932 and again in 1936
Which of the following conditions during 2008-2009 most closely paralleled the economic conditions of the Great Depression?
A)record-high unemployment rates for a period of many years
B)a sharp and prolonged contraction in the money supply
C)significant increases in taxes and trade restrictions in order to counter budget deficits
D)frequent policy changes that generated an unstable and unpredictable economic climate
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.
Which of the following is an important lesson that can be drawn from the experience of the Great Depression?
A)Frequent shifts in monetary policy can help smooth out unstable economic conditions during a recession.
B)Trade restrictions can "save jobs" and expand total employment during an economic downturn.
C)The good intentions of political decision-makers are no substitute for sound policy.
D)The federal government should always balance its budget during a recession.