What Prompted the Large Increase in Tax Rates in 1932

question 79

Multiple Choice

What prompted the large increase in tax rates in 1932 in the midst of an economic recession?

• A) concern that inflation would rise due to increases in real output and aggregate demand
• B) expansionary fiscal policy designed to stimulate aggregate demand
• C) the Keynesian view that taxes should be increased during a recession
• D) the view that the federal government should maintain a balanced budget

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Definitions:

Calories

A unit of energy used to quantify the amount of energy obtained from food and drinks, as well as the energy expended through physical activity.

Salty Foods

Foods high in salt content, which can enhance flavor but may also pose health risks if consumed in excess, such as increased blood pressure.

Preventable

Preventable describes conditions, diseases, or situations that can be avoided through proactive measures, such as vaccination, lifestyle changes, or environmental modifications.

Vaccination

The process of administering a vaccine to stimulate an individual's immune system to develop adaptive immunity to a pathogen, protecting the individual from specific diseases.