Answered

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
Please select the best answer from the choices provided
OA
OB
Ос
D



Answer :

GinnyAnswer
The correct answer to the question is:

A. People's lack of confidence in the economy, which causes spending to remain low.

Explanation:
Depression cycles are challenging to escape due to various factors. In this question, all the given options except for choice A contribute to the perpetuation of the depression cycle.

Choice A states that people's lack of confidence in the economy causes spending to remain low. When individuals are uncertain about the economy, they tend to save more and spend less, which can lead to a decrease in overall demand for goods and services. This reduced spending can have a negative impact on businesses, leading to lower production levels and potential layoffs, further exacerbating the economic downturn.

On the other hand, choices B, C, and D all describe consequences of economic downturns rather than reasons for the difficulty in escaping depression cycles. Lack of production, decreased spending leading to increased production, and people in debt not making payments leading to bank failures are all outcomes or effects of economic depressions, rather than core reasons for the difficulty in breaking out of them.