The consensus is that the Great Depression was ended by:
A) imposing fiscal discipline and reducing budget deficits.
B) following Keynes's analysis regarding the "animal spirits."
C) increasing the money supply and lowering the interest rate.
D) applying expansionary fiscal policy on a large scale.

Question

Quizplus · Accepted Answer

The best choice is applying expansionary fiscal policy on a large scale. This was done through policies such as the New Deal, which involved large government spending and public works projects to stimulate economic activity and create jobs. This contributed to the recovery of the US economy from the Great Depression.

The Consensus Is That the Great Depression Was Ended By