1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fudgin [204]
3 years ago
7

The great deppresion was caused primarily because?​

Social Studies
2 answers:
barxatty [35]3 years ago
8 0

Nine thousand banks failed during the months following the stock market crash of 1929. It is far too simplistic to view the stock market crash as the single cause of the Great Depression. A healthy economy can recover from such a contraction.

pishuonlain [190]3 years ago
7 0

Answer:

What made the Great Depression "Great" was the government response. Constant changes the regulatory environment, tax increases, massive deficits, and failure to let the market correct paralyzed the economy in its depressed state for 15 years.  

Both were caused primarily by an over expansion of credit rooted in loose money supply. The monetary response to the current recession has been different. Rather than tightening to force the market to bottom, the Fed has maintained low rates in an effort to re-inflate the bubble conditions. Hoover/Bush & FDR/Obama responses are similar as all tried to spend their way out of the problem.  

1929 crash:  

After WWI, Britain reset the pound to the pre-WWI level even though their money supply had far exceeded pre-WWI levels. In an effort to slow the flight of gold from Britain, the US federal reserve (led by Benjamin Strong) lowered interest rates. As always, artificially low interest rates caused massive distortions in asset values. Money flowed into the stock market and people who would not normally have been stockholders bought stocks in place of other investments that would have yielded better interest rates absent fed policy. Margin was used excessively because the real cost of leveraging was distorted by fed interest rate policy.  

The fed continually lowered interest rates all the way into 1929. When the bubble popped, they tightened policy and raised rates. This contributed the deflationary spiral; however, the deflationary spiral could not have been as severe without the loose policy during the bubble.  

2008 crash:  

Beginning in the early 1990s, the federal reserve (led by Alan Greenspan) lowered rates while monitoring consumer prices as indicators of inflation. They ignored bubbles in the stock market directly caused by their inflationary monetary policy. When the stock bubble popped, they lowered rates further and pushed misdirected investment towards other assets - most commonly housing.  

After the attacks of 9/11/2001, the fed pushed rates to 0 (long term rates were effectively negative and continue to be).

Explanation:

You might be interested in
A research study in a laboratory setting incorporates four randomized groups (two control and two experimental) in which only on
kumpel [21]

Answer: The correct answer is Solomon four-group design.

Explanation: The Solomon four-group design is a research design in which the four groups of the research have different experiences,

1- The first group is Pretested,

2- The second group or control group is pretested as well,

3- The third group receives treatment and then is post-tested.

4- The fourth group receives no treatment, is post-tested.

This design is done to acknowledge the influence of pretesting in posttest results.

In conclusion, the research design is experimental and its called Solomon four-group design.

4 0
3 years ago
__________ theorists stress that socialization contributes to false consciousness—a lack of awareness and a distorted perception
Virty [35]
A. ConflictConflict theory<span> views social life as a competition and focuses on the distribution of resources, power, and the resulting inequality. </span>Conflict theorists<span> view society as an arena of inequality that generates social </span>conflict<span> and social change. </span>
<span>It holds that, because of competition for limited resources, social order is maintained by domination and power</span>


6 0
3 years ago
This regions largest country is India
mario62 [17]

Answer:

South Asia

Explanation:

8 0
3 years ago
Read 2 more answers
3. How can you be a good and useful member of your society? Discuss
alina1380 [7]
Contribute to the community
Don’t commit any crimes(on purpose)
Vote
Use your knowledge to help others
6 0
2 years ago
Which type of economic system is Mongolia developing? A)socialistic B)communistic C)free-market D)centrally-planned
ira [324]
Answer:You’re answer would be C Free-market

HOPE IT HELPED:)
4 0
3 years ago
Other questions:
  • Please Help Me Thanks
    14·1 answer
  • Why did Socialist parties grow during the period of labor unrest and high unemployment of the 1920s and 1930s?
    5·2 answers
  • The testimonial execution is effective, especially with services, because it simulates:
    10·1 answer
  • Studies of _________________ help determine how people form their political opinions and attitudes.
    10·1 answer
  • You have a child who attends daycare while you attend classes. Just before class, you are notified that your child has a slight
    10·1 answer
  • Pls help me answer this question if correct I'll make brainylist!!!!​
    6·2 answers
  • What creatures used to live under bridges but now live online
    8·1 answer
  • Social participation is the back of socialization. Justify.​
    14·1 answer
  • Why did the elevation of land is measured from the level of sea?
    8·1 answer
  • Saddam Hussein was the leader of what country from 1979 to 2003?
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!