(Answered) A recession occurred in 1937 when FDR ordered sharp cuts in federal expenditure.Question 16Select…

➤ What were the main causes of the 1937–1938 recession beyond federal spending cuts?
Beyond spending restraint, policymakers tightened monetary conditions and the Treasury absorbed bank reserves. The Social Security payroll tax reduced household incomes, and firms cut inventories and investment. Those forces combined to reduce consumption and industrial output and reversed much of the moderate recovery achieved earlier in the decade.