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A huge drop in stock markets. Companies being to fail, causing workers to be laid off. Thus, causes the worker to not have money for food for them/their family, which may result in death.
Revelations that spies in the US atomic program had passed secrets to the Soviet Union set off a nationwide panic that communist spies might be infiltrating many American institutions.
Allegations that Hollywood was rife with communists led the House Committee on Un-American Activities (HUAC) to investigate many actors, writers, and directors during the 1950s. Alleged communists were placed on a blacklist and barred from working in Hollywood.
Republican Senator Joseph McCarthy took advantage of this widespread paranoia to advance himself politically by accusing State Department employees of communist leanings. McCarthy's accusations were unsubstantiated, and the Senate eventually censured him.
C) increase the money supply
Monetarism sees careful control of the money supply as the key to maintaining a stable economy. The ideas of monetarism were first put forth by economist Milton Friedman, who believed that those in charge of the money supply in a society should focus on maintaining price stability. Having too much cash in circulation stimulates inflation. However, in regard to your particular question, during a recession prices stagnate or decrease and interest rates are forced to drop as well. Monetarists would see an increase in the money supply as a way to turn prices back upward during a recession.
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