Which of the following best describes the policy of the New Deal to combat the Great Depression?
(a) Taxation should be increased so as to eliminate the deficit in the federal budget.
(b) Government spending should be reduced so as to give businesses confidence that the free enterprise system was not being replaced by big government.
(c) The government should offset deficiencies in private spending with increased government spending in order to create jobs—any jobs.
(d) Private enterprise should be replaced by government planning because the market system had failed to provide prosperity and economic growth.
ANSWER
(c)
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