Which of the Following Did NOT Happen During the Onset

question 224

Multiple Choice

Which of the following did NOT happen during the onset of the Great Depression?

• A)The money supply fell as households took money out of banks.
• B)The Bank of Canada decreased the bank rate.
• C)The real GDP per person fell about 30 percent.
• D)Bankers began holding greater reserves.

---

Definitions:

Proportional Tax

A tax system where the tax rate is fixed and applied equally to all taxpayers, irrespective of income level.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a taxing authority.

Tax Incidence

The manner in which the burden of a tax is shared among participants in a market.

Tax Burden

The measure of the total amount of taxes that individuals, businesses, or other entities must pay, relative to their income or profits.