One major effect of the Great Depression was
A)it reaffirmed everyone's faith that capitalism was a self-correcting system.
B)it encouraged voters to limit the role of government.
C)the creation of the rational expectations school of economic theory.
D)a decreased faith in the ability of economies to automatically correct major problems.

Question

Quizplus · Accepted Answer

The Great Depression led to a decreased faith in the ability of economies to automatically correct major problems. This led to the development of various economic theories and policies aimed at providing government intervention and regulation in the economy to prevent and correct future crises. The belief in the self-correcting capabilities of capitalism was severely challenged during this time.

One Major Effect of the Great Depression Was