(Last Word) According to the Austrian School, the Best Explanation

question 118

Multiple Choice

(Last Word) According to the Austrian School, the best explanation for what caused the Great Recession was that

• A)tax rates that were too high discouraged spending.
• B)government spending that was too low created insufficient public capital.
• C)interest rates that were too low induced excessive borrowing.
• D)interest rates that were too high discouraged firm borrowing and investment.

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Definitions:

Conscientious

Describing a person who shows diligence and a willingness to do what is right.

Neurotic

A term relating to neurosis, involving long-term tendencies to experience negative emotional states like anxiety, depression, or irritability.

Introverted

Describing a person predominantly concerned with their own thoughts and feelings rather than with external things.

Extraversion

A personality trait characterized by orientation towards the external environment and enjoyment from engaging in social interactions, as opposed to introversion.