Question

Which factors led led to a weakening economy in the United States check all that apply

Answer 1

Answer:

Speculation in the stock market

Unequal distribution of wealth

Overproduction

Context:

• Overproduction is defined as an excessive production; production in excess of need or stipulated amount.
• The imbalanced distribution of assets with monetary worth or other forms of wealth among a population is known as unequal distribution of wealth. A large amount or stock of money, priceless items, real estate, or other resources is referred to as wealth. Another way to put it is a profusion or plenty of things; a large quantity.
• Stock market speculation is the activity of taking up high-risk positions in an effort to swiftly generate a sizable profit. Traditional study of a stock's long-term worth and stability is not the foundation of speculative trading. However, it entails examination of short-term factors, such as price swings and market volatility, and is not done carelessly.

What was the cause of the economic crisis in America?

Flushing large sums of money into the banks and markets while lowering interest rates to below 1% is loose monetary policy motivated by a pandemic. Excessive free money in the trillions, driven by the pandemic, has been given out by the government in the form of rent freezes, increased unemployment benefits, PPP business loans with no interest and no repayment requirements, subsidies for earned income credits, child care tax credits, and stimulus checks. Biden is still pushing for more through his built-better plan and the chips act, which is backed by billionaires. These ongoing trillions in spending have no other source of funding than deficit spending. Ukraine Russia's conflict is causing increased inflation, supply chain restrictions for gas and oil supplies globally, gains, materials for fertilizers, etc., which are all being barred by sanctions or by Russia's barring of seaborne freight from leaving Black Sea ports. Lockdown in Shanghai, followed by a halt to manufacturing and transportation of commodities. Both of these have resulted in tighter supplies and consequent price increases that have led to inflation. They all contribute to demand-pull inflation.

Thank you,

Eddie