All of the Following Took Place During the Great Depression

question 19

Multiple Choice

All of the following took place during the Great Depression except

• A)increase in unemployment from about 3.4 percent to about 25 percent and a decrease in real GDP by about 30 percent between 1929 in 1933.
• B)an increase in taxes because of the fear that budget deficits would undermine business confidence.
• C)a fall in the money supply by more than 30 percent.
• D)a rise in inflation during the early 1930s.
• E)the stock market crashed by about one-third in October of 1929.

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Definitions:

Debtors

Individuals or entities that owe money to another entity, typically as a result of borrowing funds.

Business Owners

Individuals who legally possess a company, assume major risks, and enjoy the benefits from its operation and growth.

Inventories

Quantities of goods or materials that a company holds for the purpose of sale or production at a given time.

Recession

An appreciable fall in economic activities spread throughout the economy, continuing for longer than a few months, typically observed in real GDP, real income, employment, industrial production, and wholesale-retail sales.