Government regulation plays a role in business in protecting consumers, preventing actions taken by businesses that will hurt the overall economy, and also in regulating the financial industries sector to prevent major economic turmoil. Periods of unregulated economic activity have been mired by large booms and busts, so governments have attempted to intervene to regulate economies in order to prevent these damaging cycles to economies.
According to the treaty of versellias Germany was expected to pay the damages in world war 1.
<u>Explanation:</u>
The Treaty of Versellias was signed in 1919. The treat required Germany to pay almost 33 billion US dollars for reparations and covering the civilian damage done in the war. Germany was considered to be the cause of World War 1 and so had to pay a heavy debt or fine for the same.
Germany was however not in a condition to pay such a huge sum and the payment meant a financial crisis for the economy of Germany. The Treaty was also considered to be a cause of the Second World War.
