Which of the Following Was True of Fiscal Policy During

question 17

Multiple Choice

Which of the following was true of fiscal policy during the Great Depression?

• A) The federal government generally ran a budget surplus and this reduced aggregate demand.
• B) The federal government persistently balanced its budget during the 1930s.
• C) Government spending was reduced as a share of GDP and budget deficits were small.
• D) Government spending increased as a share of GDP but budget deficits were relatively small (generally less than 4 percent of GDP).

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Political Issues

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