The Great Depression was made more severe because
A) the government lowered tariffs against imported goods.
B) the Federal Reserve increased the money supply after the stock market crashed.
C) depositors made runs on banks, thereby destroying the banking system in large parts of the nation.
D) depositors left their money in banks instead of increasing spending, which would have increased GDP.
Question 2
Which of the following situations will arise in the domestic market following the removal of an import quota?
A) imports increase, domestic production increases, prices increase
B) imports decrease, domestic production decreases, prices increase
C) imports decrease, domestic production increases, prices decrease
D) imports increase, domestic production decreases, prices decrease
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