Before the Great Depression of the 1930s, Most Economists Believed

question 15

Multiple Choice

Before the Great Depression of the 1930s, most economists believed that

• A)only active government policy could prevent recessions or inflation.
• B)a capitalist economy had a natural tendency to cure recessions or inflation.
• C)a capitalist economy had a natural tendency to inflation.
• D)recessions and depressions were inevitable until the economy broke down completely.

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Definitions:

Insider Trading

The illegal buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

Material Information

Information that could influence the decision of an investor or affect the value of an investment if disclosed.

Public Announcement

An official statement released to the general public from a company or organization.

Responsibilities

Duties or obligations that an individual or entity is bound to perform or uphold, which may be legal, ethical, or moral in nature.