Which One of the Following Factors Contributed to the Decline

question 80

Multiple Choice

Which one of the following factors contributed to the decline in real output during the Great Depression?

• A) Deflation, which changed the terms of long-term contracts and discouraged long-term exchange.
• B) Inflation, which reduced the value of the dollar and eroded the savings of the elderly.
• C) Stable monetary policy, which caused business decision makers to lose confidence in the Fed's ability to fine-tune the economy.
• D) Establishment of the Federal Deposit Insurance Corporation.

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Definitions:

Credit Sales

Transactions where goods or services are provided to the buyer with the agreement that payment will be made at a later date.

Sherman Act

A foundational U.S. antitrust law enacted in 1890, aimed at prohibiting monopolistic practices and promoting competitive markets.

Monopoly Power

The exclusive control by one company over the entire supply of goods or services in a particular market.

Ancillary Vertical Restraints

Restrictions imposed in distribution agreements, designed to support the main purpose of the contract and enhance competitiveness.