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:

Defined Contribution Plan

A retirement plan in which the employee, employer, or both make contributions on a regular basis, but the benefit received upon retirement depends on the plan's investment performance.

401k Plans

A retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out.

Employer Match

A contribution made by an employer to an employee's retirement plan, equal to a certain percentage of the employee's own contributions.

Return On Investment

A measure of the profitability and efficiency of investment, calculated by dividing net profit by the initial capital cost.