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According to the Keynesians, the Great Depression Was Primarily Caused

Question 46

Multiple Choice

According to the Keynesians, the Great Depression was primarily caused by


A) the stock market crash of 1929, in which many people lost their life savings
B) an inactive Fed that did not respond adequately to the financial crisis that followed the stock market crash of 1929
C) a sharp reduction in consumption and investment spending accompanied by restrictive fiscal policies
D) large budget deficits that crowded out private spending as the government implemented a fiscal stimulus package
E) a collapse of the housing market followed by a financial crisis that made it difficult for businesses to get loans

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