0
Mal-investments in financial markets: Government intervention in financial markets and monetary policy causes asset bubbles. Asset bubbles are created when there is a percieved absence of risk in the marketplace caused by government garuntees - while at the same time access to credit is kept cheap with artificially low-interest rates; This causes excessive speculation.
Capital (wealth) becomes mal-invested (wasted), and excessive credit use causes high levels of debt.
The outcome is a dramatic reduction in future spending as wealth is used to pay down the accumulated debt.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What face of a business cycle can lead an economy into recession?
contraction
A shortage of a natural resource can lead to which phase in the business cycle?
recession
What of these points in the business cycle creates excitement and wealth but can also lead to deeper recessions after it ends?
boom A+
What is the impact of poverty on business operations?
Poverty ? People who live in the urban areas might not take this seriously but little do they know that this also has a major impact on their standards of living simply because it effects the market systems in the economy. Business cycle begins to have a down turn due to poverty reason being is that there are lack of resources or not much money injected into the economy due to corruption with the government.
What did the growth of suburbs lead to?
it lead to a wealthier nation in which poverty was lowerd
What is the poverty cycle?
The poverty cycle is a cycle that shows the different factors of poverty. Born into poverty- health problems- lack of education- lack of job-(that is the poverty cycle but it keeps on repeating
What face of a business cycle can lead an economy into recession?
contraction
What are the effect of poor academic performance?
According to research, poor academic performance can often lead to poverty. Poverty then affects academic performance, and unfortunately, the cycle continues.
A shortage of a natural resource can lead to which phase in the business cycle?
recession
Which phase of a business cycle can lead an economy into recession?
The most telling indicator or "cycle" is usually a decrease in material production.
What is poverty stage?
how can affety business poverty
What of these points in the business cycle creates excitement and wealth but can also lead to deeper recessions after it ends?
boom A+
How could you break the cycle of poverty?
:) hi
Is never ending poverty debasing?
no
What is impacts of poverty on business operations?
Poverty ? People who live in the urban areas might not take this seriously but little do they know that this also has a major impact on their standards of living simply because it effects the market systems in the economy. Business cycle begins to have a down turn due to poverty reason being is that there are lack of resources or not much money injected into the economy due to corruption with the government.
What is the impact of poverty on business operations?
Poverty ? People who live in the urban areas might not take this seriously but little do they know that this also has a major impact on their standards of living simply because it effects the market systems in the economy. Business cycle begins to have a down turn due to poverty reason being is that there are lack of resources or not much money injected into the economy due to corruption with the government.
What are the causes and consequences of poverty in Somaliland?
Causes of poverty in Somaliland include droughts, limited job opportunities, political instability, and lack of access to basic services like healthcare and education. The consequences of poverty in Somaliland can lead to malnutrition, poor living conditions, limited access to quality education, and healthcare services, and can perpetuate a cycle of poverty for future generations.
