Which of the Following Had the Greatest Impact in Pulling

question 136

Multiple Choice

Which of the following had the greatest impact in pulling the U.S.economy out of the Great Depression?

• A)the economy's natural tendency to contract toward potential output
• B)the federal government's aggressive policy of tax cuts
• C)the federal government's aggressive policy of monetary stimulus
• D)a precipitous drop in aggregate demand
• E)the increased spending brought on by World War II

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Definitions:

Negotiable Instrument

A formal paper assuring the disbursement of a specified amount of funds, which could be paid either immediately when requested or at a scheduled time, with the document identifying the payor.

Demand Instrument

A type of draft that allows the payee to demand payment at any time from a holder.

Overdue

Pertaining to something that has not been completed, paid, or returned by its expected or agreed-upon deadline.

Liability

The legal responsibility to settle a debt or compensate for harm caused to someone else, often resulting from actions or negligence.