In an Effort to Forestall an Economic Downturn, the Truman

question 35

Multiple Choice

In an effort to forestall an economic downturn, the Truman administration did all of the following except

• A) create the President's Council of Economic Advisers.
• B) sell war factories and other government installations to private businesses at very low prices.
• C) pass the Employment Act, which made it government policy to promote maximum employment.
• D) pass the Servicemen's Readjustment Act, known as the GI Bill of Rights.
• E) continue wartime wage and price controls.

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Definitions:

Effective-Interest Method

An accounting technique used to amortize the discount or premium on bonds payable or receivable over the life of the bond, reflecting the bond's yield.

Zero Coupon Bonds

Bonds issued at a discount from their face value, which do not pay periodic interest but are redeemed at full face value at maturity.

Effective Interest Rate

The real rate of interest taking into account the effects of compounding over a given period.