What Order of Events Led to the Real Shock in Banking

question 102

Multiple Choice

What order of events led to the real shock in banking that occurred during the Great Depression?

• A) A reduction in the productivity of financial institutions led to a decrease in money supply that led to bank failures that led to a reduction in aggregate demand.
• B) Bank failures led to a decrease in money supply, which led to a reduction in the productivity of financial institutions that resulted in the fall of aggregate demanB.
• C) A fall in money supply led to a reduction in aggregate demand that caused bank failures and led to a reduction in the productivity of financial institutions.
• D) None of the answers is correct.

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Definitions:

Unconscious Defense Mechanisms

Tactics used by the subconscious mind to alter, deny, or twist reality to guard against anxiety and undesirable tendencies.

Denial

A defense mechanism where confrontation with a reality or fact is avoided by denying the existence of the problem or reality.

Sublimation

A psychological defense mechanism where socially unacceptable impulses are transformed into socially acceptable actions or behavior.

Mildly Hostile Humor

Forms of humor that contain subtle or indirect expressions of hostility or criticism, often used to mask aggression or discontent.