Which of the following best describes the policy of the New Deal to combat the Great Depression?
(a) Taxation should be increased so as to eliminate the deficit in the federal budget.
(b) Government spending should be reduced so as to give businesses confidence that the free enterprise system was not being replaced by big government.
(c) The government should offset deficiencies in private spending with increased government spending in order to create jobsany jobs.
(d) Private enterprise should be replaced by government planning because the market system had failed to provide prosperity and economic growth.
Question 2
The most commonly used tool by the Federal Reserve to control the monetary base is
a. changes in the discount rate.
b. changes in tax rates on commercial banks.
c. changes in legal required reserve ratios.
d. open market operations.
The “Big Four” world leaders meet at the Hotel Crillon in Paris, 1919. From left to right (front row
Diathesis–stress model of depression.
Reconstruction Drawing of the Megaron (Great Room) of the Pylos Palace
End Moraines of the Great Lakes Region