The Decline in the Price Level Following the 1929 Stock

question 69

Multiple Choice

The decline in the price level following the 1929 stock market crash may have reduced household spending on durable goods and houses because the decline

• A)resulted in higher nominal interest rates.
• B)led the government to increase its spending, which crowded out spending by households.
• C)increased the real value of outstanding household debt.
• D)led to an offsetting decline in nominal wages.

---

Definitions:

Enlarged Bones

A condition characterized by the abnormal enlargement or thickening of bones, often due to diseases like osteoarthritis or acromegaly.

Humpback

A condition, also known as kyphosis, where there is an excessive outward curve of the spine, causing a hunched back.

Kyphosis

A forward rounding of the back, leading to a hunched posture, which can be due to various medical conditions.

External Auditory Meatus

The ear canal, a pathway running from the outer ear to the middle ear.