What Was the Most Common Initial Response of Governments to the Great

question 26

Multiple Choice

What was the most common initial response of governments to the Great Depression?

• A)Raise taxes, cut expenditures, and balance the budget
• B)Lower taxes and increase spending to stimulate the economy
• C)Change nothing and let the market heal itself
• D)Lower tariffs to stimulate international trade
• E)Reverting to Keynes theories of rationale government intervention

---

Definitions:

Distributive Bargaining

A negotiation strategy where parties involved view the resources as fixed and limited, focusing on dividing these resources to maximize their own share.

Integrative Bargaining

A negotiation strategy where parties collaborate to find mutually beneficial solutions or compromises.

Distributive Bargaining

A negotiation strategy that involves seeking to divide a fixed amount of resources or benefits, often resulting in a win-lose situation.

Fixed Pie

A term often used in negotiations, indicating the belief that the resources or benefits to be divided are limited and static.