The pre-World War II boom-and-bust business cycle was driven by
A) economic policies that allowed rises in inflation, followed by a Federal Reserve-caused recession to reverse the rise in inflation.
B) economic policies that allowed unemployment to rise, followed by expansionary fiscal and monetary policies to reverse the rise in unemployment.
C) consumers' swings from optimism to pessimism and back again.
D) investors' swings from optimism to pessimism and back again.

Question

Quizplus · Accepted Answer

The pre-World War II boom-and-bust cycle was largely driven by investors' swings from optimism to pessimism and back again, which affected investment and economic activity.

The Pre-World War II Boom-And-Bust Business Cycle Was Driven by