Economic Practice and Development Practice Test

During the Great Depression, a 1932 Austrian banker warns that failing banks and collapsing credit are intensifying unemployment and reducing industrial output. He argues that governments should increase public spending on infrastructure and relief, even if budgets run deficits, to stimulate demand. Which economic approach does this recommendation most closely anticipate?

A late 19th-century German industrialist praises a new corporate form that allows many small investors to buy shares, limits individual liability, and raises large pools of capital for railways, steelworks, and chemical plants. He notes that banks increasingly coordinate investment and that firms seek to stabilize prices by cooperating with competitors. Which trend in European economic development is most directly reflected in this description?