ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Riots
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The debt crisis
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The stock market crashed
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The country shutdown
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Detailed explanation-1: -Business houses closed their doors, factories shut down and banks failed. Farm income fell some 50 percent. By 1932 approximately one out of every four Americans was unemployed.
Detailed explanation-2: -The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.
Detailed explanation-3: -Response. The U.S. Government responded to the Financial Crisis by lowering interest rates to nearly zero, buying back mortgage and government debt, and bailing out some struggling financial institutions. 16 With rates so low, bond yields became far less attractive to investors when compared to stocks.
Detailed explanation-4: -The Emergency Relief and Construction Act (1932) provided funds to the RFC to make loans for relief to the states and included additional money for local, state, and federal public works projects.