Regarding the Theoretical Operation of the Pigou,expectations,and Redistribution Effects,does the U.S.experience

question 135

Multiple Choice

Regarding the theoretical operation of the Pigou,expectations,and redistribution effects,does the U.S.experience between 1929 and 1933 provide any evidence?

• A)Since the price level did not fall,no evidence is provided.
• B)Only the Pigou effect appears to have operated.
• C)The Pigou effect appears to have overwhelmed the other effects.
• D)All three effects appear to have helped cushion the fall in output.
• E)The expectations and redistribution effects appear to have overwhelmed the Pigou effect.