After the depression of the 1930s and the interruption of World War II, in the post-war period (1945–50) private investment
(a) fell back to the 1920s level.
(b) rose to unprecedented levels.
(c) collapsed in the 1948 downturn and then returned to the stagnation levels of the 1930s.
(d) did none of the above.
(b)
You might also like to view...
The foreign exchange market refers to:
a. a physical place in the heart of New York City's financial district, where traders come to trade other currencies. b. a collection of all purchases and sales of one currency for another,where exchange rates are determined. c. the discount window of the Federal Reserve. d. the commodity futures market.
Suppose that the economy is in long-run equilibrium and the government decided to engage in expected expansionary policy by increasing the money supply. If we assume rational expectations, which of the following statements is correct about the effect of expansionary policy in the long run?
A. The unemployment rate will increase, real Gross Domestic Product (GDP) will increase and the price level will increase. B. The unemployment rate will decrease, real Gross Domestic Product (GDP) will decrease and the price level will decrease. C. The unemployment rate will remain unchanged, real Gross Domestic Product (GDP) will remain unchanged and the price level will increase. D. The unemployment rate will remain unchanged, real Gross Domestic Product (GDP) will remain unchanged and the price level will decrease.