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The Great Depression
Part 1 of Paper
....policies.
and the New Deal are complex topics that are open to many interpretations. The
Great Depression was the worst economic slump ever in U.S. history, and one
which spread to virtually all of the industrialized world.
Seeing the order in which events actually occurred dispels many myths
about the Great Depres.... Part 2 of Paper
....; but times become tougher when
everyone starts hoarding money. This breakdown results in a recession.
To get the circular flow of money started again, Keynes suggested that
the central bank, the Federal Reserve System, should expand the money supply.
This would put more money in people's hands (through the multiplier effect),
inspire consumer confidence, and compel them to start spending again.
A depression, Keynes believed, is an especially severe recession in
which people hoard money no .... |
| Number of words: 1588 - Approximate pages: 6 |
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