The Federal Budget Was in Deficit from 1931 to 1939,except

question 43

Essay

The federal budget was in deficit from 1931 to 1939,except in the year 1937.Given this fact,how do you explain E.Cary Brown's statement,"Fiscal policy,then,seems to have been an unsuccessful recovery device in the 'thirties-not because it did not work,but because it was not tried."

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a given time.

Federal Deregulation

The process of removing government restrictions and rules in industries to increase efficiency and competition.

Interest Rates

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, typically over a one-year period.

Existing Loans

Financial obligations that are currently outstanding and have not yet been repaid.