Which of the Following Best Describes the Economic Dynamic of the Great

question 19

Multiple Choice

Which of the following best describes the economic dynamic of the Great Depression?

• A) Economic uncertainty prompted dramatic increase in the labor force participation rate.
• B) Plummeting sales and lack of consumer confidence triggered a surge in the trade deficit.
• C) Declining sales tax revenue triggered a disproportionate rise in income taxes.
• D) Mass unemployment and the lack of investment triggered a devastating cycle of deflation.

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Definitions:

Incorporate

To incorporate is to legally form a corporation by filing required documents with a governmental entity, granting the company distinct legal status from its owners.

Unlimited Liability

The liability of the sole proprietor or the partners for all debts incurred by the business to the extent of their personal resources.

Sole Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Incorporated

A legal process whereby a business entity is formed as a distinct legal entity, separate from its owners, with its own rights and liabilities.