What was not an effect of the Great Depression?
A)Policy makers recommended boots in government spending after recessions.
B)Policy makers believed reductions in taxes would promote growth.
C)The government limited its role in correcting the economy.
D)The Federal Reserve increased its role in correcting the economy.

Question

Quizplus · Accepted Answer

The government actually increased its role in correcting the economy during the Great Depression, through measures like the New Deal programs. The other options are all effects of the Great Depression: policymakers recommended government spending increases after recessions to help stimulate the economy and prevent another depression (A), reductions in taxes were seen as a way to encourage spending and investment (B), and the Federal Reserve increased its role in stabilizing the economy through monetary policy (D).

What Was Not an Effect of the Great Depression