Which of the Following Was True of Fiscal Policy During

Multiple Choice

Which of the following was true of fiscal policy during the Great Depression?

A) The federal government generally ran a budget surplus and this reduced aggregate demand.
B) The federal government persistently balanced its budget during the 1930s.
C) Government spending was reduced as a share of GDP and budget deficits were small.
D) Government spending increased as a share of GDP but budget deficits were relatively small (generally less than 4 percent of GDP) .