Analysis of the Great Depression indicates that
a. even though monetary and fiscal policies were highly expansionary, they were unable to offset the economic downturn.
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 depth of the economic plunge, if not its onset, was the result of monetary, fiscal, and regulatory policies.
D
You might also like to view...
Supply-side fiscal policies focus on improving the incentives to work, save, and invest
a. True b. False Indicate whether the statement is true or false
Which of the following is not considered a criticism of globalization?
a. International corporations serve only the interests of the corporations. b. Globalization promotes "free" but not "fair" trade. c. Globalization encourages harmful labor practices. d. Globalization promotes only trade based on comparative, and not absolute advantage. e. Globalization occurs at the cost of environmental quality.
Objections to free trade
a. arise because trade harms everyone b. arise when some groups within a nation are harmed by trade c. arise because importers and exporters are often the same people d. are inconsistent with economic rationality e. arise because people prefer not to consume foreign-produced goods
Use the following table to answer the next question.Interest RateAsset Demand for Money (billions)7%$0610052004300If the money supply equals $300 billion dollars and the transaction demand for money equals $200 billion dollars, the equilibrium interest rate is
A. 6%. B. 7%. C. 4%. D. 5%.