Which of the Following Did Not Contribute to the Severity

question 48

Multiple Choice

Which of the following did not contribute to the severity of the Great Depression?

• A) a sharp reduction in the money supply during the early 1930s
• B) a large tax increase (to balance the budget) in the early 1930s
• C) substantial increases in the tariff rates on imported goods
• D) a reduction in government expenditures and a substantial cut in personal income tax rates during 1932 and again in 1936

---

Definitions:

Economic Effects

The impact of economic activities and policies on the overall condition of the economy, including effects on growth, inflation, and employment.

Government Price Supports

Programs or policies implemented by a government to maintain the market price of a good or service at a certain level.

Farmers' Income

The earnings obtained by farmers for their labor and investment in agricultural activities, which can fluctuate significantly due to market and environmental conditions.

Agribusiness

The business sector encompassing farming and farming-related commercial activities, involving the production, distribution, and marketing of agricultural goods.