Which of the following factors contributed to the sharp reduction in aggregate demand during the Great Depression?
I. reduction in wealth
II. reduction in net exports
III. a financial crisis that reduced money supply
IV. tax increases
A) I and III only
B) I, III, and IV only
C) I, II, and III only
D) I, II, III, and IV

Question

Quizplus · Accepted Answer

All listed factors contributed to the reduction in aggregate demand during the Great Depression: a reduction in wealth, a reduction in net exports, a financial crisis that reduced the money supply, and tax increases.

Which of the Following Factors Contributed to the Sharp Reduction