Question

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

Answer 1

i am pretty sure the answer is D

Answer 2

Out of all of the provided reasons, the cycle of depression is not affected by lack of confidence leading to lowered spending.

Option A is the correct answer.

What is meant by spending?

Spending is an economic activity where the government spends money on improving the economic conditions in a nation.

The depression cycle is affected by lack of production, lesser spending, and debtors not making the reimbursements. This is the scenario when every economic activity experiences a downturn in the whole economy of a country.

Therefore, the lowered spending driven by a lack of confidence among people should not affect the cycle of depression.

Learn more about the depression cycle in the related link:

https://brainly.com/question/13150321

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