What Prompted the Large Increase in Tax Rates in 1932

question 140

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:

Mental Representations

The mental forms that a real object or event can take.

Objects

Material things that can be seen and touched, often regarded in contrast to concepts, ideas, or feelings that are intangible.

Three-year-olds

Three-year-olds are children at the age of three, a developmental stage where significant growth in language, motor skills, and social interaction is observed.

Scaffolding

Vygotsky’s term for temporary cognitive structures or methods of solving problems that help the child as he or she learns to function independently.