Which of the Following Is Not Thought to Have Contributed

question 106

Multiple Choice

Which of the following is not thought to have contributed to the Great Depression?

• A)interest rate competition
• B)banks selling corporate stocks and bonds
• C)fears about the safety of deposits
• D)lack of bank liquidity
• E)bank holiday

---

Definitions:

Utility Maximization

The process by which individuals or consumers adjust their consumption of goods and services to achieve the highest level of utility or satisfaction.

Marginal-Utility Schedules

Charts or tables that represent the additional satisfaction or utility a consumer gains from consuming an additional unit of a good or service.

Utility Maximization

A principle in economics that suggests individuals and firms seek to allocate their resources in a way that maximizes their satisfaction or utility.

Diminishing Marginal Utility

A principle stating that as a person consumes more units of a particular good or service, the satisfaction (utility) gained from consuming each additional unit decreases.