Most individual investors borrowed money to buy stocks and many of them also bought these stocks on margin, meaning they only actually paid for 80% - 90% of the stock they had had borrowed money to buy. They were called 'margin millionaires' - they actually truly owned very little of the stock. Threes investors became extremely vulnerable to lack of confidence in stock prices when the stock prices fell somewhat and we're the first to line up to sell their stocks. That in combination with the fact that many businesses had borrowed heavily to invest in their businesses, when a stock sell-off frenzy began businesses' stock value feel rapidly, banks couldn't be repaid, the banks collapsed and a great deal of people lost their life savings very rapidly.
Booking like in plane ticket?
The statement that best describes the outcome of the Persian Wars is “The Greeks were able to stop a Persian invasion, and the Persian Empire stopped trying to conquer Greece.” The problem that led to the start of the Persian Wars was that Persia wanted to punish Athens for the Lomian revolt.
Explanation:
<em>What happens when money supply increases?</em>
The increase in the money supply will lead to an increase in consumer spending. This increase will shift the AD curve to the right. Increased money supply causes reduction in interest rates and further spending and therefore an increase in AD.money is a means of payment for goods and services. It serves as a medium of exchange.
Hope this helps..
