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kicyunya [14]
3 years ago
11

What is the difference between the Senate and the House of representatives?

History
1 answer:
viva [34]3 years ago
6 0

Answer:

The United States Congress holds its meetings in the Capitol Building in Washington D.C., the US capital. The representatives and senators are appointed through direct election although a vacancy in the Senate can be filled by gubernatorial appointment. The history of the House dates back to the Virginia Plan which was envisioned by Edmund Randolph. The Virginia plan proposed the idea of a bicameral legislature and the creation of the House to represent the Americans. James Madison

Explanation:

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The correct answer is indeed A) kept interest rates low.

Ok, let me try to resume.

When the central bank injects reserves, it encourages banks to lend out money at lower interest, attracting borrowers for this money and leading entrepreneurs to invest, once the higher interest rates would not be profitable. Interest rates coordinate savers and investors action. Investment requires resources to be frozen rather than consumed, meaning that less spending by the population reflects more resources available to fund these investments, resulting in a lower rate of interest.

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Now, finally going back into the answer.

During the late 1920s rates were kept artificially low by the Federal Reserve, sparking a boom, specially in the stock market, with prices rising up to 50 percent quickly. In 1929, once the government started tightening credit to cool down the overheated stock market it produced, the burst happened, leading the country into the Great Depression.

Sorry for the long explanation, hope you understand the concept ;)

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