Prior to the Great Depression, the principal fiscal policy was a balanced budget.

Question

Quizplus · Accepted Answer

Prior to the Great Depression, the prevailing economic theory was that governments should strive for a balanced budget, meaning they should spend only as much as they collected in revenue. This was seen as a way to maintain fiscal responsibility and prevent excessive government debt. However, the severity of the Great Depression led many economists to question this approach and advocate for more proactive government intervention in the economy through deficit spending.

Prior to the Great Depression, the Principal Fiscal Policy Was