The great depression began in 1929 when the whole U. S. Economy went into recession. There was a rise in unemployment, poverty, low income, and deflation. Due to the fall down of the banking system in the United States, every citizen suffered the consequences of the Great Depression. Take this quiz to test your knowledge about the history of America's Great Depression. So, let's try out the quiz. Good Luck!
Zero
One
Two
Three
Stabilize prices
Increase government spending
Leave things alone
Support wage rates
Franklin Delano Roosevelt
Herbert Hoover
Woodrow Wilson
Calvin Coolidge
Lowering interest rates by 150 basis points.
Increasing government spending on infrastructure.
Reducing its holdings of government securities.
Taking over the operations of its member banks.
There wasn't one, prices fluctuated normally.
Prices increased dramatically.
Prices decreased dramatically.
Commodities couldn't be obtained at any price.
Interest rate increases and gold sales.
Increased federal spending and exports.
Equity price collapse and bank failures.
Housing price declines and reduced mortgage lending.
Tax cuts.
Public works.
Interest-free home loans.
Subsidy payments.
They expected a Communist revolution.
They expected a deeper contraction.
They expected an economic recovery.
They expected a stock market crash.
Both organizations were required to in end the economic crisis.
Both organizations refused to disclose their loan actitivies.
Both organizations used the money to acquire auto manufacturers.
Both organizations refused to make loans to banks.
The Labor Theory of Value
The Laffer Curve
Marginal Utility
The Law of Supply and Demand
The Monetarist theory that the Federal Reserve failed to sufficiently inflate the money supply.
The Keynesian theory that government did too little to rescue the market system from the consequences of its own folly.
The Austrian theory that the Federal Reserve over-inflated the money supply.
The Marxian theory that capitalism had collapsed as a result of its inherent contradictions.
A decline in the rate of GDP growth.
A reduction in the size of the national economy.
A readjustment of the economy to eliminate the distortions created during the preceding expansion.
A reduction in the velocity of money.
Why is the gross domestic product contracting instead of expanding?
Why is there a sudden general cluster of business errors?
Why is unemployment increasing?
Why is inflation increasing at the same time as unemployment?
Banks and governments inflate credit when they can.
Seasonal fluctuations systematically introduce instability into the system.
More gold is always being mined and altering the global money supply.
The decreasing marginal utility of investment goods.
The Keynesians argue that savings and investment are two entirely separate processes.
The Keynesians argue that savings and investment are identical.
The Keynesians argue that investment should increase as savings decline.
The Keynesians argue that a savings rate in excess of the rate of inflation increases investment in consumer goods.
Gold
Money
Labor
Wheat
Consumption is only one part of GDP.
Business confidence is the primary culprit.
Consumer confidence is derivative, not causal.
Rothbard does not believe in psychology.
They are smaller in the aggregate than business financing.
They do not create a boom-bust cycle.
They will evaporate when consumers go bankrupt.
They increase consumer spending and therefore economic growth.
2.5 percent
5.3 percent
7.7 percent
224 percent
A contract to pay when an equity price falls to a previously agreed level.
A mortgage bank's agreement to a loan restructure to avoid foreclosure.
A leveraged life insurance investment.
A bill sold by borrowers to dealers or banks who in turn sell the bills to the Federal Reserve System.
It didn't increase.
8 percent.
17 percent.
42 percent.
Establishing the Public Works Administration to coordinate and expand Federal public works
Establishing the Reconstruction Finance Corporation to lend to banks, industries, and credit agencies.
Federal loans of $300 million to the States.
Bankruptcy law reform.
Reducing the TED spread.
Fighting inflation.
Protecting corporate profits.
Sustaining wage rates
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