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katrin2010 [14]
3 years ago
12

What do economists mean by a "bubble"? why do many economists believe that there was a housing bubble in the united states betwe

en 2000 and 2005?
History
1 answer:
tester [92]3 years ago
4 0
A bubble is a situation in which there is a rapid escalation of <span>asset prices which is later followed by a contraction of the same. When there is a surge in asset prices which is unwarranted by the fundamentals of the assets that are in question and an exuberant market behavior supports it, a bubble is created. When nobody buys anymore and starts selling everything off then the bubble is deflated.

In that period, many people started buying homes with mortgages with adjustable rates. When the stocks started rising so did the prices of mortgage interest rates and people started realizing they couldn't pay back their loans and started losing homes. When the homes were taken away, there was a realization that the houses were not worth at all the price that was owed and that banks would suffer severe losses because of the bad mortgages that they gave. This led to the 2008 recession.</span>
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Which of the following was not a result of the stock market crash in 1929? Group of answer choices People were forced to sell th
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Answer:

The answer is: Businesses increased population.

Explanation:

Stock market crash refers to a sharp decline in the stock prices in a stock market. The decline can cause companies to borrow money in order to raise their funds.

In 1929, a stock market crash happened in the USA. The stock prices decline in four days, which highly affected the economy of the USA. The Wall Street, which powered America's financial sector and used to have a very good reputation, was ruined.

As a result of the crash, many people lost their jobs. In order to have money, they sold their homes and properties. They also lost their savings because they needed to cash on them. Due to this, many banks ran out of money. This led to the so-called <em>"Great Depression."</em>

So, the only option that was not a result of the stock market crash in 1929 is "businesses increased population."

Thus, this explains the answer.

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3 years ago
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President Lincoln reconstruction policy was designed to
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President Lincoln's Reconstruction policy was designed to: reunite the South with the North quickly.

Explanation:

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A small group that breaks away from a larger group is called a splinter party.
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Compare and contrast between farming and women in the great depression
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Farmers struggled with low prices all through the 1920s, but after 1929 things began to be hard for city workers as well. After the stock market crash, many businesses started to close or to lay off workers. Many families did not have money to buy things, and consumer demand for manufactured goods fell off. Fewer families were buying new cars or household appliances. People learned to do without new clothing. Many families could not pay their rent. Some young men left home by jumping on railroad cars in search of any job they could get. Some wondered if the United States was heading for a revolution.

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