Question

How did the united States and many other European countries initailly respond to the decrease in tax revenue caused by the great depression?
A. Investing more government funds into the stock market
B. Creating public works programs to reduce unemployment
C. Cutting government spending to avoid going into debt
D. reducing the taxes on imported goods from other countries

Answer 1

Answer

C. Cutting government spending to avoid going to debt

Explanation

During the Great Depression, there was increased unemployment that increased the challenges in the already difficult situation thus the governments were forced to spend more funds on various relief programs. Most of these programs were ineffective thus the governments embarked into reducing the spending in order to avoid debts.