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Business Economics Economics of Money, Banking and Financial Markets (12th Edition) (What's New in Economics)

Financial crises in the U.S. Introduction: A recession is the early stage of depression.During this period, the economy tends to be in a declining stage, where the slowdown is reflected in the stock market, house good market as well as there is an increase in unemployment. Explanation: Expansionary monetary policy is used by the government to expand the money supply in the economy. The money supply is increased by a reduction in interest rate, as lower interest rates will encourage people to borrow more. Contractionary monetary policy is used by the government to contract the money supply from the economy. The money supply is reduced by increased interest rates, as higher interest rates will de-motivate people to borrow. After the Great Depression of the 1930s, the other financial crises took place in 2007-2008, and this financial crisis is also referred to as the global financial crisis. Due to the financial crises of Europe, exports were greatly affected, which resulted in imbalances in trade.

Financial crises in the U.S. Introduction: A recession is the early stage of depression.During this period, the economy tends to be in a declining stage, where the slowdown is reflected in the stock market, house good market as well as there is an increase in unemployment. Explanation: Expansionary monetary policy is used by the government to expand the money supply in the economy. The money supply is increased by a reduction in interest rate, as lower interest rates will encourage people to borrow more. Contractionary monetary policy is used by the government to contract the money supply from the economy. The money supply is reduced by increased interest rates, as higher interest rates will de-motivate people to borrow. After the Great Depression of the 1930s, the other financial crises took place in 2007-2008, and this financial crisis is also referred to as the global financial crisis. Due to the financial crises of Europe, exports were greatly affected, which resulted in imbalances in trade.

Economics of Money, Banking and Financial Markets (12th Edition) (What's New in Economics)

Economics of Money, Banking and Financial Markets (12th Edition) (What's New in Economics)

12th Edition

ISBN: 9780134733821

Author: Frederic S. Mishkin

Publisher: PEARSON

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Economics of Money, Banking and Financial Markets (12th Edition) (What's New in Economics)

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