45. Unit 8-9: New Deal - Part 2 (1) Question Preview (ID: 51467)


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The federal reserve was incompetent and deserve much of the blame for the great depression.
a) True
b) False
c)
d)

Deflation lowers the demand for goods and therefore decreases or increases the price of goods.
a) decreases
b) increases
c)
d)

The theory of Keynesian Economics advocates using government spending programs to increase_________________ and stimulate the economy.
a) Supply
b) Bridges and highways
c) Employment
d) Public works

In the past, our depressions were cyclical and usually lasted about a year.
a) True
b) False
c)
d)

Due to government manipulations and the printing of more money the Great Depression lasted __________.
a) 5 years
b) 10 years
c) 12 years
d) 4 years

The national economy should __________resulting in periods of boom and bust.
a) Remain the same
b) Fluctuate
c) Recover
d) Repair itself

The _________________ is playing a larger role in our daily lives than ever before.
a) Government
b) Businesses
c) Military
d) Farmers

The government started government works projects to get more or fewer people working.
a) more
b) fewer
c)
d)

The government may have helped cause the great depression by allowing loose lending standards.
a) True
b) False
c)
d)

The Federal Reserve's policies of low interest rates lead to ______________.
a) Increased employment
b) People borrowing more money
c) Deflation
d) Inflation

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