During the Great Depression fiscal and monetary policy was characterized by
A) an increase in tax rates and a contraction in the money supply.
B) a decrease in tax rates and a contraction in the money supply.
C) a decrease in tax rates and an expansion in the money supply.
D) an increase in tax rates and an expansion in the money supply.

Question

Quizplus · Accepted Answer

During the Great Depression, the U.S. government increased tax rates and the Federal Reserve contracted the money supply, which worsened the economic downturn.

During the Great Depression Fiscal and Monetary Policy Was Characterized