Question

During the early part of the Great Depression in the 1930s, leaders in Great Britain adopted a policy of retrenchment. They hoped to improve the nation's economy by

a. reducing the size of the government and raising taxes.
b. reducing income taxes and promoting private investment.
c. reducing government spending and balancing the budget.
d. reducing tariffs and importing more inexpensive foreign products.

Answer 1

They hoped to improve the nation's economy by "c. reducing government spending and balancing the budget," since this was thought to be the best method--although this proved to be very unhelpful.