10 true/false (@ 1 pt. for 10 total points) 1. The DuPont Company survived the depression, in part by cutting half of its work force, and writing down more than half of its inventories, although it did raise its debt to precarious levels.

2. The economic recovery during 1921-1922 was very strong, with industrial production, employment and real income growing by dramatic amounts.

3. In 1921 General Motors lost more money than it earned in the previous year.

4. Although President Harding vetoed the so-called Soldier's Bonus, both the House and the Senate overrode his veto.

5. During the elections of 1922, the Democrats made gains in both the House and the Senate, but control of both chambers remained in Republican hands.

6. While American economist Irving Fisher was a strong supporter of using the government (i.e., the Fed) to stabilize prices, British economist John Maynard Keynes felt that it would be more prudent to allow prices to rise and fall as economic conditions dictated.

7. In 1923, the Federal Reserve adopted a new mission of using open market operations to pursue price stability.

8. Grant claims that history's verdict is that the recession of 1920-1921 was "ideal."

9. In the spring of 1930, American economist Irving Fisher declared that the depression, which would come to be called "The Great Depression" was a "comparatively mild business recession."

10. Grant argues that an important factor that distinguishes the depression of 1920 from 1929 is that in the former the price mechanism was allowed to work freely, while in the latter it was not.

http://www.federalreserve.gov/monetarypolicy/fomc.htm

https://www.federalreserve.gov/newsevents/pressreleases/monetary20220126a.htm

https://www.federalreserve.gov/newsevents/pressreleases/monetary20200827a.htm

https://mises.org/library/three-flawed-fed-exit-options

https://www.youtube.com/watch?v=PTUY16CkS-k

https://mises.org/blog/hidden-motive-behind-quantitative-easing

https://www.youtube.com/watch?v=sYqxZjHXbDs

https://mises.org/power-market/fed-lays-out-future-road-map

https://mises.org/wire/feds-new-policy-risks-return-1970s