Question

Which of the following was a characteristic of economic panics in the early 1800s? the boom-and-bust cycle of capitalism protective tariffs rapid industrialization a declining agricultural economy

Answer 1

Answer: the boom-and-bust cycle of capitalism

Explanation:

The Panic of 1819 was the earliest significant financial crisis during peacetime in the United States and led to a downfall of the American economy that continued into 1821.  Keynesian economists propose it was the first Republic's struggle with the boom-bust cycles characteristic of every modern economy. The cause its believed to have been the determination to call in loans of the Second Bank of the US., plus the depression and over-speculation.

Answer 2

The correct answer is A) the boom-and-busty cycle of capitalism.

A characteristic of the economic panics in the early 1800s was the boom-and-busty cycle of capitalism.

The international economy was declining, the domestic economy of the United States was expanding beyond control, cotton prices collapsed, the contrition of credit affected the market, farmers had to pay its loans which resulted in farm forclosures and some Banks went into bankrupcy. That is why a characteristic of the economic panics in the early 1800s was the boom-and-busty cycle of capitalism.