Which of the Following Factors Contributed to the Sharp Reduction

question 113

Multiple Choice

Which of the following factors contributed to the sharp reduction in aggregate demand during the Great Depression?
I. reduction in wealth
II. reduced consumer confidence
III. tax increases
IV. an expansionary monetary policy that caused inflation

• A) I and II only
• B) I and IV only
• C) I, II, and III only
• D) I, II, and IV only

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Definitions:

Principal

The original sum of money borrowed in a loan or the initial amount of investment before any earnings or interest is added.

Interest

The charge for borrowing money or the compensation paid to a lender by a borrower for the use of borrowed funds.

Total Assets

The sum of all resources owned by a company, including cash, inventory, property, and equipment, reflected on the balance sheet.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.