Which of the Following Contributed to the Severity of the Great

question 671

Multiple Choice

Which of the following contributed to the severity of the Great Depression?

• A) the substantial budget surpluses run during the Hoover administration
• B) a sharp increase in tariff rates in 1930
• C) the large reduction in tax rates under the Hoover administration
• D) a highly expansionary monetary policy followed by the Fed in the late 1920s and early 1930s

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Sales

The activity or process of selling products or services, which involves transactions between buyers and sellers.

Total Assets

The sum of all resources owned by an entity, including both current and fixed assets, representing the total value of what it owns.

Liquidity

The ease with which assets can be converted into cash without significantly affecting their value, often essential for meeting short-term financial obligations.