In regards to the uncommon length of the Great Depression, both Schumpeter and Higgs contend that:
a. private investment remained depressed in part due to the political climate created by the New Deal.
b. Social Security and the freedoms granted to labor, along with a progressive tax structure promoted growth in private investment.
c. the undistributed profits tax of 1936 encouraged businesses to undertake long-term investments.
d. the New Deal rhetoric from President Roosevelt, offered a pro-business slant that offended labor groups.
a. private investment remained depressed in part due to the political climate created by the New Deal.
You might also like to view...
A point to the left of the BP curve would represent
A) a balance of payments deficit. B) a balance of payments surplus. C) internal disequilibrium. D) Both A and C.
Liquidity provision and asset purchase may not be enough to stimulate the economy unless the these policy actions are able to
A) lower the real interest rate for investments. B) lower the short-term real interest rate. C) raise the policy rate above zero. D) lower the policy rate.