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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.
What else can I help you with?
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.
A shortage of nature resoures can lead to which phase in the business cycle?
A shortage of natural resources leads to a contractionary phase in the business cycle. The business can produce fewer goods, which means that it might not be able to meet demand. When this happens, consumers may switch brands or find substitute goods.
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
What is one of the most important factors that create a cycle of poverty?
One of the most important factors that create a cycle of poverty is the lack of access to quality education. Without education, individuals often find it challenging to secure well-paying jobs, limiting their economic mobility and perpetuating financial instability. This lack of opportunity can lead to lower educational attainment for their children, thereby continuing the cycle across generations. Additionally, inadequate education can hinder access to resources and support systems that could help break the cycle of poverty.
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 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.
Is never ending poverty debasing?
no
