According to John Maynard Keynes, the major cause of the Great Depression was
A)the collapse of the stock market
B)the inability of the Fed to conduct open market sales
C)the high interest rates that existed at the time
D)the huge increase in the federal budget deficit
E)none of the above

Question

Quizplus · Accepted Answer

Keynes attributed the Great Depression primarily to a lack of aggregate demand, not directly to any of the specific factors listed in options A through D. He believed that insufficient investment and consumer spending led to high unemployment and underutilized resources, rather than the collapse of the stock market, actions of the Federal Reserve, interest rates, or federal budget deficits directly.

According to John Maynard Keynes, the Major Cause of the Great