Author Question: Discuss the recent economic crisis and recession. What happened and why? Assess whether the federal ... (Read 63 times)

ARLKQ · **on:** Jul 10, 2018

Discuss the recent economic crisis and recession. What happened and why? Assess whether the federal government should take any steps to prevent this from happening again. If so, what steps?

What will be an ideal response?

Question 2

Discuss government regulation in the United States during the nineteenth century.

What will be an ideal response?

jxjsniuniu · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: An ideal response will:
1. Outline the factors that contributed to the recent financial recession, including the collapsing mortgage industry and the investment crisis.
2. Illustrate how these two factors created slowdowns in construction, growing government expenditures, and losses of jobs that sparked a domino effect that rippled throughout the U.S. economy.
3. Connect how the efforts to deregulate certain sectors of the financial industry, specifically investment banking, created conditions under which banks took higher risks.
4. Lay out a specific course of action that would minimize these effects in the future, including efforts to reregulate the financial and housing sectors, or alternately argue why government should not guarantee against risk.

Answer to Question 2

Answer: An ideal response will:
1. Discuss the beginnings of the regulatory movement in the nineteenth century, noting its origins in anti-trust legislation.
2. Note that these regulations were designed to prevent monopolistic business practices by so-called trusts.