Which of the following did NOT contribute to the falling aggregate demand that triggered the Great Depression in the United States?
A) Interest rates fell due to expansionary monetary policy.
B) Taxes were increased.
C) Consumers and businesses were pessimistic after the 1929 stock market crash.
D) Thousands of banks failed, causing many to lose their life's savings.

Question

Quizplus · Accepted Answer

Interest rates falling due to expansionary monetary policy would typically increase aggregate demand by making borrowing cheaper, encouraging spending and investment, rather than contributing to a fall in aggregate demand.

Which of the Following Did NOT Contribute to the Falling