Which of the Following Best Summarizes the Main Causes of the Great

question 101

Multiple Choice

Which of the following best summarizes the main causes of the Great Depression?

• A) Oil-producing countries deliberately raised the price of petroleum,leading to inflation and a deep recession.
• B) The Federal Reserve raised short-term interest rates very high in an effort to decrease inflation,which also drove the economy into a recession.
• C) The end of overseas war efforts led to a deep decrease in federal spending,which reduced employment and caused a recession.
• D) A stock market crash led to a decrease in expected income and tight monetary policy.Higher tax rates and a banking crisis then drove the economy into a depression.
• E) The stock market collapsed following the end of a bubble in technology stock prices,which caused a decrease in investment spending and a recession.

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Definitions:

Valuation-Relevant

Describes information or data that can significantly impact the valuation of a company's assets, liabilities, or equity.

Transitory Components

Temporal elements in financial reports or economic indicators that are expected to exist only for a short period and do not reflect the long-term performance or value.

Quality-Enhanced

A description for improvements made to a product or service to increase its value or appeal to consumers.

Reported Earnings

The profit a company officially reports to the public in its financial statements, adhering to standard accounting practices.