Before the Great Depression the government was NOT expected

Before the Great Depression, the government was NOT expected to:

a) maintain competition.

b) provide central banking services.

c) provide national defense.

d) promote policies to maintain full employment.

Solution

d) promote policies to maintain full employment.

Govt believed in laissez-faire i.e. free market would correct any decrease in demand and hence govt did not need to interfere. Post depression, we saw govt participating by increasing its spending to maintain full employment.