One Similarity Between the Great Recession and the Great Depression

question 104

Multiple Choice

One similarity between the Great Recession and the Great Depression is that in both episodes

• A) large numbers of banks failed.
• B) there were significant problems in financial markets.
• C) the U.S.government raised taxes.
• D) the U.S.government allowed the money supply to decrease.
• E) the unemployment rate exceeded 20 percent.

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Definitions:

Common European Currency

The Euro, which is the official currency used by the majority of countries within the European Union.

Political Risks

The potential for losses or uncertainties in business operations due to political decisions, conditions, or changes in a country.

Higher Productivity

An increase in the efficiency of production, often through better utilization of resources, leading to greater output for the same amount of input.

Maquiladoras

Factories in Mexico, typically owned by foreign companies, that import raw materials and produce goods for export, benefiting from lower labor costs.