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Why Is It Possible That the Economy Will Not Self-Correct

question 193

Essay

Why is it possible that the economy will not self-correct out of a recessionary gap?


Definitions:

Tax Treatment

The specific way tax laws apply to particular transactions or classes of income in a financial context.

Interest Rates

The percentage rate of a loan that is charged as interest to the borrower, routinely represented as an annual percentage of the outstanding loan principal.

New Shares

Shares that are issued by a company for the first time to the public, typically through an initial public offering (IPO) to raise capital.

Indirectly Borrowing

Obtaining funds through an intermediary, such as by taking out a loan through a bank, rather than directly from a lender.

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