Before the recession
Identify 2 ways that causes the great recession
The collapse of housing market
Toxic subprime mortages
weak watchdogs
Name on act that government enact during the great recession.
American Recovery and Reinvestment Act of 2009
The Economic Stimulus Act of 2008
Was there a recovery after the great recession, if does, identify it.
Yes, the American recovery and reinvestment act of 2009.
Why did prime mortgages directly cause the great recession?
Because the mortgage lender rushes to approve as many home loans as possible, including borrowers whose loans are below the deal line, people basically loan the amount they can't afford.
What is the Stimulus Act of 2008?
Basically, everyone including children is able to receive a 600-dollar redebt from the government.
US is the best country to live in during the great recession?
Describe what is a watchdog.
person or organization that makes sure that companies, governments, etc., are not doing anything illegal or wrong. In this case, the organization checks the agencies that bless credit rating agencies.
Describe the American Recovery and Reinvestment Act of 2009.
The government provides 800 billion dollars to promote economic recovery, the goal is to stimulate the economy.
what should us do in the future to avoid another great recession?
Loosening monetary policy: cutting interest rates to reduce the cost of borrowing and encourage investment
Expansionary fiscal policy: increased government spending financed by borrowing will enable the injection of investment into the circular flow.
Ensure financial stability; in a credit crunch government intervention to guarantee deposits and major financial institutions can maintain credibility in the banking system.
What date does the great recession efficiently begin?
December 2007
Predict the result of previous acts.
Both of them are successful act.
How long does the recovery take to bring back the economic
7 years, until august, 2015