Answer:
What made the Great Depression "Great" was the government response. Constant changes the regulatory environment, tax increases, massive deficits, and failure to let the market correct paralyzed the economy in its depressed state for 15 years.
Both were caused primarily by an over expansion of credit rooted in loose money supply. The monetary response to the current recession has been different. Rather than tightening to force the market to bottom, the Fed has maintained low rates in an effort to re-inflate the bubble conditions. Hoover/Bush & FDR/Obama responses are similar as all tried to spend their way out of the problem.
1929 crash:
After WWI, Britain reset the pound to the pre-WWI level even though their money supply had far exceeded pre-WWI levels. In an effort to slow the flight of gold from Britain, the US federal reserve (led by Benjamin Strong) lowered interest rates. As always, artificially low interest rates caused massive distortions in asset values. Money flowed into the stock market and people who would not normally have been stockholders bought stocks in place of other investments that would have yielded better interest rates absent fed policy. Margin was used excessively because the real cost of leveraging was distorted by fed interest rate policy.
The fed continually lowered interest rates all the way into 1929. When the bubble popped, they tightened policy and raised rates. This contributed the deflationary spiral; however, the deflationary spiral could not have been as severe without the loose policy during the bubble.
2008 crash:
Beginning in the early 1990s, the federal reserve (led by Alan Greenspan) lowered rates while monitoring consumer prices as indicators of inflation. They ignored bubbles in the stock market directly caused by their inflationary monetary policy. When the stock bubble popped, they lowered rates further and pushed misdirected investment towards other assets - most commonly housing.
After the attacks of 9/11/2001, the fed pushed rates to 0 (long term rates were effectively negative and continue to be).
Explanation:
Random sampliing helps to remove various biases that come with selection of subjects. In statistics, random sampling, is considered the best way to obtain a representative sample of a population.
Answer:Alternative evaluation needs.
Explanation:The alternative evaluation is the third stage of a consumer buying decision,at this stage,the consumer evaluates and compares alternative products and eventually buys the product that gives the maximum satisfaction.
Demonstrating for political causes and volunteering in a political campaign are the forms of political participation require citizens to spend a comparatively large amount of personal resources.
<h3>What are the political causes?</h3>
The International Monetary Fund is dead accurate about inequality being detrimental to stability. However, the United Nations Commission of Experts on Reforms of the International Monetary and Financial System highlighted growing inequality as one of the most significant reasons contributing to the Great Recession of 2008 long before the IMF confirmed this relationship.
I outline the ways that inequality frequently results in instability in "The Price of Inequality." Both were there during our most recent crisis.
Learn more about political causes here
brainly.com/question/6278272
#SPJ1
