Each of the following is a fact about the Great Depression except
A) from full employment in 1929, real GDP fell until it was nearly 40 percent below potential output by 1933.
B) investment spending collapsed: by 1932 real investment spending was less than one-ninth of what it had been three years before.
C) unemployment had reached a quarter of the labor force by 1933.
D) real interest rates decreased.

Question

Quizplus · Accepted Answer

Real interest rates actually increased during the Great Depression, which made borrowing more expensive and contributed to the reduction in investment and consumption.

Each of the Following Is a Fact About the Great