Question

Which economic policy, would you have recommended to President Roosevelt in 1929?
A. cut government spending
B. raise income tax rates
C. increased spending by the government
D. propose a new tax on businesses

What is the primary action taken by the federal government when inflation is wide spread
in the American economy?
A. raising taxes on foreign governments
B. lowering tariffs rates on imports
C. raising taxes on individuals and businesses
D. closing all state banks

Answer 1

Answer:

1. C. increased spending by the government

2. C. raising taxes on individuals and businesses

Explanation:

1. The economic policy, I would have recommended to President Roosevelt in 1929 is to "increased spending by the government."

This is because by increasing government spending, the government will create more jobs and enabling environments for businesses to thrive, and in turn, the production level increases, and then GDP grows. This is because the issue affecting the country in 1929 is Great Depression.

2. The primary action was taken by the federal government when inflation is widespread in the American economy is "raising taxes on individuals and businesses"

This is because by raising taxes on individuals and businesses, more money in correlation which led to inflation will greatly reduce and therefore the economy will regulates.