Which One of the Following Factors Contributed to the Decline

question 373

Multiple Choice

Which one of the following factors contributed to the decline in real output during the Great Depression?

• A) deflation, which changed the terms of long-term contracts and discouraged long-term exchange
• B) inflation, which reduced the value of the dollar and eroded the savings of the elderly
• C) stable monetary policy, which caused business decision makers to lose confidence in the Fed's ability to fine-tune the economy
• D) establishment of the Federal Deposit Insurance Corporation

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Definitions:

Antecedent State

The situational conditions or moods affecting an individual's cognitive processes and decision-making prior to engaging in a particular action or behavior.

Internal Search

The cognitive process by which an individual retrieves knowledge or past experiences to inform current decision-making.

External Search

The process of seeking information from sources outside of one's immediate personal knowledge to make a decision.

Purchase Task

The activities and decision-making processes involved in buying a product or service.