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ira [324]
3 years ago
8

1. Why might some historians consider Adam Smith one of the most influential people in history?

Social Studies
1 answer:
Alex777 [14]3 years ago
4 0

He introduced a way of thinking about economic ideas.

Explanation:

Adam smith was a great economist who advocated free trade in market economy of the country. He was also a celebrated economist during the Enlightment era. He also proposed that a minimum government intervention would promote the economy into a prosperous financial path. It was considered to contradictory to mercantilism.

He also advocated that self-interest is key factor which would promote buying and selling in the business. He also insisted that free market trading is autonomous and independence in trading can make a nation gain much wealth.  

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Answer:

The result would likely be a contraction of the economy. The GDP would probably fall or grow less.

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Contractionary monetary policy is applied by the central bank (the Federal Reserve in the United States). It would consist in reducing the amount of money available (the money supply). Less money in the economy results in higher interest rates. This creates a cycle in which banks give less loans, and investment falls. Less investment contracts the economy.

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3 years ago
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