What Prompted the Large Increase in Tax Rates in 1932

question 79

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:

Genchi Genbutsu

A Japanese phrase meaning 'go and see for yourself', used in business to emphasize the importance of understanding a situation firsthand.

Empower People

A principle aimed at giving individuals the tools, resources, and authority to make decisions and contribute to their organization or community.

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The practice of using coupons inappropriately or fraudulently, often violating the terms of use.

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The act of dishonestly returning goods to a store for a refund or exchange without legitimate reason.