The In the News article in the text titled "Fiscal Policy in the Great Depression" discusses fiscal spending and taxation.During the Great Depression,the federal government pursued a policy of fiscal restraint that led to
A)An increase in aggregate supply.
B)A decrease of the federal deficit.
C)The retirement of bonds,which reduced the federal debt.
D)A decrease in aggregate demand.

Question

Quizplus · Accepted Answer

The article states that the government pursued a policy of fiscal restraint, which led to decreased government spending and increased taxes. This reduction in government spending and increase in taxes led to a decrease in aggregate demand, which worsened the already struggling economy of the Great Depression.

The in the News Article in the Text Titled "Fiscal