Which one of the following factors contributed to the decline in real output during the Great Depression?
a. deflation, which changed the terms of long-term contracts and discouraged long-term exchange
b. inflation, which reduced the value of the dollar and eroded the savings of the elderly
c. stable monetary policy, which caused business decision makers to lose confidence in the Fed's ability to fine-tune the economy
d. establishment of the Federal Deposit Insurance Corporation
A
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An economist from which school of thought would most likely accept the following- "The wide acceptance and practice of activist government fiscal policy."
a. Traditional classical economics b. Neoclassical economics c. Marxist economics d. New monetarist economics e. Keynesian economics
Are there ever exceptions to the law of demand?
The payroll tax differs from the individual income tax because the payroll tax is primarily earmarked to pay for
a. employer-provided pensions. b. Social Security and Medicare. c. employer-provided health benefits. d. job loss and training programs.
Which of the following would economists label as an example of the "tragedy of the commons?"
A. The over-fishing of the oceans B. The use of pesticides on private farm land C. The use of growth hormone on cattle D. The neighbor who does not mow his yard