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What Was the Most Common Initial Response of Governments to the Great

Question 26

Multiple Choice

What was the most common initial response of governments to the Great Depression?


A) Raise taxes, cut expenditures, and balance the budget
B) Lower taxes and increase spending to stimulate the economy
C) Change nothing and let the market heal itself
D) Lower tariffs to stimulate international trade
E) Reverting to Keynes theories of rationale government intervention

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