USSR began building missile sites in Cuba in 1962.
There was a coup in Cuba in '59. The new government did not like the United States and took over some American businesses.
The missle sites could hit any city in the USA.
American ships blocked Soviet ships carrying misses into Cuba. The Soviets and Cubans agreed to take away the missiles if America promised not to attack Cuba.
Technically, nobody won. Although, the USSR lost China's support after.
Source: https://www.enotes.com/homework-help/what-some-cause-effects-cuban-missile-crisis-508792
Answer:
This borrowing may have a negative impact by crowding out private investment.
Explanation:
When the government goest into deficit spending to stimulate the economy in times when the economy is slowing down, what happens is that the government now demands more loanable funds: it demands a higher proportion of the savings in the economy in the form of government bonds.
This higher government demand for loanable funds crowds out private investment for two reasons:
- It raises the interest rate, making private investment more expensive.
- It reduces the amount of loanable funds available for the private sector (because it takes over a larger share of them).
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