Analyze the following statement "the global financial crisis of 2008-2009 was a great illustration of how interdependent national economies are."
What will be an ideal response?
True. The global financial crisis that started in 2008, although commonly blamed on the U.S. quickly spread to all economies in the world. Although overt global policy coordination was not practiced, countries followed similar policies to escape the crisis, such as decreasing interest rates and providing funds to financial institutions to help stimulate lending.
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Most economists believe that the return of ________ during the 2007-2009 recession is a key reason why the recession was so severe
A) high interest rates B) rapid inflation C) high tariffs D) financial instability
The Banking Acts of 1933 and 1935
A) established the Federal Reserve System. B) increased central control of the Federal Reserve System. C) eliminated the authority of the Board of Governors to set reserve requirements. D) made the Secretary of the Treasury a member of the Board of Governors.