One of the Assertions That Keynesians Make When Explaining the Severity

question 4

Multiple Choice

One of the assertions that Keynesians make when explaining the severity of the Great Depression in the U.S.is that

• A)the economic collapse originated from the negative effect that the stock market crash had on individuals' wealth
• B)investment spending responded negatively to huge increases in the real interest rate
• C)vigorous use of expansionary fiscal policy early on could have reduced the severity of the economic downturn
• D)in response to the stock market crash, the U.S. Fed imposed credit controls that were much too restrictive
• E)none of the above

---

Definitions:

Counterconditioning

A behavioral therapy technique that involves teaching the patient to replace undesirable responses to stimuli with more desirable ones.

Feedback

The process of returning information about the outcome of a process or activity; an essential component of effective communication and improvement processes.

Ostracism

The social exclusion or rejection of an individual or group by a social network or community.

Homosexual Life

The experiences, challenges, and cultural practices of individuals who identify as homosexual, focusing on social, emotional, and relational aspects.