All of the Following Statements Are Correct About the Great

question 31

Multiple Choice

All of the following statements are correct about the Great Depression except

• A)the stock market crash in the United States led to the withdrawal of American investments in Europe, thus weakening the European banking system.
• B)economic depressions were a new phenomena in the European experience.
• C)during the Depression, women were often able to secure low-paying jobs and servants and housekeepers while many men remained unemployed.
• D)the classical liberal remedies for depressions were balanced budgets, cutting costs, and raising tariffs, all of which only worsened the crisis.
• E)fascism and communism appealed to many because of the perceived failure of capitalism.

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to entry, and perfect information among buyers and sellers.

Close Substitutes

Products or services that can easily replace each other in the eyes of consumers due to their similar functions or characteristics.

Imperfectly Competitive

A market structure where individual producers have some control over the price and supply of products, as opposed to perfect competition where no single producer can influence the market.

Market Price

The prevailing rate at which a commodity or service is available for purchase or sale in a specific market.