What Was Not an Effect of the Great Depression

question 191

Multiple Choice

What was not an effect of the Great Depression?

• A)Policy makers recommended boots in government spending after recessions.
• B)Policy makers believed reductions in taxes would promote growth.
• C)The government limited its role in correcting the economy.
• D)The Federal Reserve increased its role in correcting the economy.

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Definitions:

Warrant Attached

An option issued by a company that gives the holder the right to purchase the company’s stock at a specific price before expiration.

Ex-rights

Denotes a security that is trading without the right to receive the most recently announced rights offering.

Additional Paid-in Capital

The amount of money investors have paid to a company above and beyond the par value of the shares they have purchased.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in any given year, ensuring that dividends must be paid out to preferred stockholders before common stockholders receive any.