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


Please select the best answer from the choices provided

A
B
C
D

Answer 1

The correct answer is C.

C. decreased spending, which leads to increased production

This statement is not consistent with the nature of depression cycles. Decreased spending generally leads to decreased production, not increased production, which is a reason why it's a poor fit for the context of the question. The other choices describe contributing factors that typically perpetuate a downward economic cycle.