16. Which of the following is true? a. The Great Depression was caused in part by “the liquidity trap.” b. The Great Depression illustrated why the “Paradox of Thrift” is important for understanding the macroeconomy. c. The Great Depression proved that savings do not equal investment because of pessimistic animal spirits. d. The price system in the capital market (the real interest rate) was sabotaged by a structurally unsound central banking system. e. The Great Depression was caused in part by runaway greed among the business owners of the time.
16. Which of the following is true? a. The Great Depression was caused in part by “the liquidity trap.” b. The Great Depression illustrated why the “Paradox of Thrift” is important for understanding the macroeconomy. c. The Great Depression proved that savings do not equal investment because of pessimistic animal spirits. d. The price system in the capital market (the real interest rate) was sabotaged by a structurally unsound central banking system. e. The Great Depression was caused in part by runaway greed among the business owners of the time.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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16. Which of the following is true?
a. The Great Depression was caused in part by “the liquidity trap.”
b. The Great Depression illustrated why the “Paradox of Thrift” is important for understanding the macroeconomy.
c. The Great Depression proved that savings do not equal investment because of pessimistic animal spirits.
d. The price system in the capital market (the real interest rate) was sabotaged by a structurally unsound central banking system.
e. The Great Depression was caused in part by runaway greed among the business owners of the time.
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