What are some possible actions the government could have/should have taken during the Depression to assist...

What are some possible actions the government could have/should have taken during the Depression to assist people?

Expert Solution

Government culd have taken several steps to tackly the challenges of depression, they are:

Decrease the taxes in the market and increase the government expenditure in the market, this will increase the aggregate demand and shift the demand curve to the right reducing the recession.
Fed could have brought bonds from the market, reduce the discount rate and the reserve ration to flush more money in the market, this will increase the investment and demand to reduce the recession.
Government could further reduce the legal requirement and make it easy for business to operate in the market

Rahul Sunny answered 2 years ago

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