The Recession of 1937-38 Had Two Basic Causes: (1)________________________;and (2)________________________

question 20

Short Answer

The recession of 1937-38 had two basic causes: (1)________________________;and (2)________________________.

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Definitions:

Crowding-out Effect

A situation where increased government spending leads to reduced investment in the private sector.

Government Borrowing

The process by which governments finance their expenditures by issuing debt instruments, such as bonds, to the public or borrowing from financial institutions.

Great Recession

A severe global economic downturn that began in 2007 and lasted until 2009, marked by significant declines in financial markets and economic activity worldwide.

Fiscal Policy Measures

Government actions involving taxation and spending to influence the economy.