All of the Following Events Are Consistent with the Spending

question 39

Multiple Choice

All of the following events are consistent with the spending hypothesis as contributing to the Great Depression except:

• A) the decline in investment spending on housing because of a decline in immigration in the 1930s.
• B) the decline in consumption spending caused by the stock market crash of 1929.
• C) fiscal policy to reduce the budget deficit by raising taxes in 1932.
• D) the 25-percent reduction in the money supply between 1929 and 1933.

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Definitions:

Transmitter Substances

are chemical substances, such as neurotransmitters, that transmit nerve impulses across synapses between nerves or from nerves to muscles or organs.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Reuptake

The process by which neurotransmitters are taken back into the synaptic vesicles from where they were originally released, thus terminating the signaling between neurons.

Stimulants

A class of drugs that increase brain activity, leading to increased alertness, attention, and energy.