Question

3. How did the Great Depression affect fiscal policy in the United States?

It showed that the government should not interfere in the economy.
OIt convinced the president to raise taxes on everyone.
OIt convinced the government to take a more active role in the economy.
OIt showed that the United States needed to trade more with other countries.

Answer 1

It convinced the government to take a more active role in the economy.

The Great Depression had a significant impact on fiscal policy in the United States. It exposed the limitations of laissez-faire economics and the need for government intervention in times of economic crisis. President Franklin D. Roosevelt introduced the New Deal, a series of programs and policies designed to stimulate the economy and provide relief to those in need. These policies included increased government spending, job creation programs, and regulations on businesses to prevent further economic collapse. Therefore, option C is the correct answer.