Which of the Following Is True About the Great Depression

question 98

Multiple Choice

Which of the following is true about the Great Depression?

• A) Following the Great Depression of 1929, the economy did not regain its potential output until the early 1940s when the pressures of WWII sharply increased aggregate demand.
• B) Expansionary monetary and fiscal policies successfully moved the economy from the Great Depression of 1929 within three to five years.
• C) The Great Depression of 1929 was considered to be a normal stage of business cycles.
• D) The Great Depression could be explained by classical economic theory.

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Definitions:

Cash Outflow

Payments or expenditures made by a business, including costs such as rent, loan repayments, and purchase of goods or services.

Investing Activities

Part of the cash flow statement that shows the cash spent on and generated from investment-related activities such as purchases and sales of physical assets or securities.

Cash Inflows

Funds being received by a business from any source, including sales, investment income, or financing activities.

Cash Outflows

Money leaving a business through expenses, investments, and other financial activities, reducing the cash balance.