The Consensus Is That the Great Depression Was Ended By

question 252

Multiple Choice

The consensus is that the Great Depression was ended by:

• A) imposing fiscal discipline and reducing budget deficits.
• B) following Keynes's analysis regarding the "animal spirits."
• C) increasing the money supply and lowering the interest rate.
• D) applying expansionary fiscal policy on a large scale.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Positive Economic Statement

A factual claim about the world that can be tested and validated, referring to what is, rather than what ought to be.

Normative

Normative relates to an ideal standard or model, often reflecting opinions about what is desirable or how things should be, especially in ethics and economics.

Gasoline

A petroleum-derived liquid mixture consisting mainly of hydrocarbons, used primarily as fuel in internal combustion engines.