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During the 1930s, Politicians Did Not Use Fiscal Policy to Counter

Question 5

Multiple Choice

During the 1930s, politicians did not use fiscal policy to counter the Great Depression because:


A) they feared the consequences of government budget deficits.
B) the Federal Reserve system opposed the idea.
C) the adherence to the gold standard prevented the necessary increase in the money supply.
D) they were concerned about the ensuing increase in interest rates.

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