Question

Question 5

1 pts
interest rates set by the federal gov. in the 1930s after the
depression hit made it difficult to obtain credit at a time where it was desperately
needed.

O Low
O High

Answer 1

The federal government set high interest rates in the 1930s after the depression, making it difficult to obtain credit when it was desperately needed. The correct answer is option: high.

Step-by-step explanation:

The subject of this question is History and it pertains to the interest rates set by the federal government in the 1930s after the Great Depression hit. During this time, the federal government implemented policies that made it difficult to obtain credit when it was desperately needed. These policies aimed to stabilize the economy but had the unintended consequence of restricting access to credit.

Interest rates act as a tool for the government to control the money supply and influence economic activity. In the 1930s, the government raised interest rates to encourage saving and reduce investment and consumption. This was done to combat inflation and stabilize the economy. However, the high interest rates made it challenging for individuals and businesses to access credit, which was essential for economic growth and recovery.