Suggest a Set of Policies,macro- and Micro-Economic,which the Federal Government

Question

Examlex · Accepted Answer

The Answer is To avoid the Great Depression, the federal government could have implemented a set of policies at both the macro- and micro-economic levels.

At the macro-economic level, the government could have pursued expansionary monetary and fiscal policies. This could have involved lowering interest rates and increasing government spending to stimulate economic activity. Additionally, the government could have implemented measures to stabilize the financial system and prevent bank failures.

At the micro-economic level, the government could have focused on regulatory reforms to prevent speculative excesses and market manipulations. This could have involved tighter regulations on the stock market and financial institutions to prevent excessive risk-taking and fraud.

The Hoover administration did take some measures to address the economic challenges during the Great Depression, such as increasing public works projects and creating the Reconstruction Finance Corporation to provide loans to banks and businesses. However, these efforts were not sufficient to prevent the severe economic downturn.

Overall, the Hoover administration did come close to adopting some of the recommended policies, but their actions were not aggressive enough to effectively mitigate the economic crisis. More proactive and expansive measures were needed to avoid the severity of the Great Depression.

Suggest a Set of Policies,macro- and Micro-Economic,which the Federal Government

Definitions: