5
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 5 • LHS Oklahoma History

Depression cycles are difficult to escape for all of the following reasons except __________.

Answer
A
people’s lack of confidence in the economy, which causes spending to remain low
B
lack of production, which leads to increased unemployment
C
decreased spending, which leads to increased production
D
people in debt not making payments, which leads to bank failures

Explanation

A depression cycle can continue when people lose confidence and spend less, when low production leads to unemployment, and when unpaid debts cause banks to fail. Decreased spending generally leads businesses to reduce production, not increase it. Therefore, choice C, “decreased spending, which leads to increased production,” is the exception.

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