Asked by Nayda Espinoza on Apr 28, 2024
Verified
The recession of 1937-38 could be blamed on
A) the Roosevelt Administration's deficit spending.
B) the Roosevelt Administration's attempt to balance the budget.
C) the Federal Reserve's driving down interest rates.
D) a large tax cut.
Roosevelt Administration
Refers to the period of Franklin D. Roosevelt's presidency in the United States from 1933 to 1945, marked by New Deal policies aimed at economic recovery from the Great Depression.
Federal Reserve
The leading bank system in the US tasked with managing and regulating America's financial and currency systems.
Deficit Spending
The practice of a government spending more money than it receives in revenue over a specific period, often leading to borrowing.
- Recognize factors contributing to economic recessions and expansions in U.S. history.
Verified Answer
MC
Makayla CottleMay 02, 2024
Final Answer :
B
Explanation :
The recession of 1937-38 can be primarily attributed to the Roosevelt Administration's attempt to balance the budget. After several years of deficit spending under the New Deal, President Roosevelt shifted focus to reducing the budget deficit in 1936, which led to a decrease in government spending and a slowdown in economic growth. This policy tightening contributed to the recession that followed in 1937-38.
Learning Objectives
- Recognize factors contributing to economic recessions and expansions in U.S. history.