When the government pursued a "tight money" policy during the Great Depression,it caused aggregate demand to decrease because:
A) it led to an increase in stock prices and household wealth.
B) it reduced consumer spending and investment spending.
C) it caused tax rates to decrease.
D) it led to very high rates of inflation, which eroded household spending.
E) it caused a rapid decline in exports to other countries.
Correct Answer:
Verified
Q72: Prior to the Great Depression,U.S.stock prices decreased
Q83: Keynesian economists believe that
A) the long run
Q84: Among the beliefs held by classical economists,one
Q87: When considering how the economy works,classical economists
Q89: During the Great Depression,aggregate demand in the
Q90: The primary cause of the Great Depression
Q91: During the Great Depression,aggregate demand in the
Q92: As a result of several factors,aggregate demand
Q93: During the Great Depression,aggregate demand in the
Q94: Classical economists believe that
A) prices are sticky.
B)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents