Stagflation, it is an economic cycle characterized by slow growth and a high unemployment rate accompanied by inflation.
Answer:
Reducing risk
Explanation:
The two ways by which risk can be managed are;
✓ Risk avoidance
✓ risk reduction
risk reduction are activities needed to bring about lower likelihood of risk as well as severity of loss. We can reduce risk through reduction of allocation of our resources to risky situation. An example of reducing risk is in the instance of Financial markets that are making the process of borrowing large amounts of money easier because they simplify the negotiation process between borrowers and lenders.
The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks.
