Asked by jakaila perry on Jul 01, 2024
Verified
Which of the following best expresses the prevailing thought in 1929 concerning economic depressions?
A) Massive government aid to business is the best way to overcome a depression.
B) Economic downturns are natural and simply must be allowed to run their course.
C) The proper course during a depression is to lower tariff levels and raise taxes.
D) The key to overcoming a depression is to raise interest rates.
Government Aid
Financial or material assistance provided by the government to individuals, groups, or institutions in need.
Tariff Levels
The rates at which goods are taxed when imported or exported, affecting trade policies and economic relations.
- Understand the elements that led to the economic prosperity of the 1920s and the origins of the Great Depression.
Verified Answer
DI
Dapson IshmealJul 04, 2024
Final Answer :
B
Explanation :
During the 1920s, the prevailing thought among many economists and policymakers was that the economy moved in cycles, with periods of growth followed by periods of contraction. This belief, coupled with a laissez-faire approach to government intervention in the economy, led many to believe that economic downturns were natural and unavoidable. The prevailing thought was that economies needed to be allowed to "run their course" and eventually reach equilibrium on their own. Therefore, choice B best expresses the prevailing thought in 1929 concerning economic depressions.
Learning Objectives
- Understand the elements that led to the economic prosperity of the 1920s and the origins of the Great Depression.
Related questions
Which of the Following Factors Contributed to the Great Depression ...
Which of the Following Was True of Many American Businesses ...
Which of the Following Is True of America's Economic Relations ...
Who Said Our Economy Seems Capable of Remaining in a ...
What Share of the Nation's 25,000 Banks Failed Between 1929 ...