Which of the following best expresses the prevailing thought in 1929 concerning economic depressions?

A) Massive government aid to business is the best way to overcome a depression.
B) Economic downturns are natural and simply must be allowed to run their course.
C) The proper course during a depression is to lower tariff levels and raise taxes.
D) The key to overcoming a depression is to raise interest rates.

During the 1920s, the prevailing thought among many economists and policymakers was that the economy moved in cycles, with periods of growth followed by periods of contraction. This belief, coupled with a laissez-faire approach to government intervention in the economy, led many to believe that economic downturns were natural and unavoidable. The prevailing thought was that economies needed to be allowed to "run their course" and eventually reach equilibrium on their own. Therefore, choice B best expresses the prevailing thought in 1929 concerning economic depressions.