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:

Inventory Loan

A loan that is secured by the inventory of a business, allowing the company to use its inventory as collateral.

Maturity Factoring

A financing method where a business sells its invoices to a factor at a discount but receives payment only when the customer pays the invoice at maturity.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to raise immediate capital.