One Major Effect of the Great Depression Was

question 69

Multiple Choice

One major effect of the Great Depression was

• A)it reaffirmed everyone's faith that capitalism was a self-correcting system.
• B)it encouraged voters to limit the role of government.
• C)the creation of the rational expectations school of economic theory.
• D)a decreased faith in the ability of economies to automatically correct major problems.

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Definitions:

Federal Mandate

Regulations that the federal government imposes on state and local governments to carry out certain policies.

Federal Expenditures

The spending by the federal government of a country, including on defense, education, public welfare, and infrastructure projects.

Average Tax Rate

The portion of total income paid in taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Taxable Income

The amount of income subject to taxes, determined by subtracting deductions and exemptions from gross income.