Which of the Following Best Summarizes the Main Causes of the Great

question 101

Multiple Choice

Which of the following best summarizes the main causes of the Great Depression?

• A) Oil-producing countries deliberately raised the price of petroleum,leading to inflation and a deep recession.
• B) The Federal Reserve raised short-term interest rates very high in an effort to decrease inflation,which also drove the economy into a recession.
• C) The end of overseas war efforts led to a deep decrease in federal spending,which reduced employment and caused a recession.
• D) A stock market crash led to a decrease in expected income and tight monetary policy.Higher tax rates and a banking crisis then drove the economy into a depression.
• E) The stock market collapsed following the end of a bubble in technology stock prices,which caused a decrease in investment spending and a recession.

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Definitions:

P(A And B)

The probability that events A and B both occur.

P(A Or B)

The probability that at least one of two events, A or B, will occur.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of the other.