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What sorts of businesses would be hit

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1. Discuss the causes of the Great Depression in terms of what you know about the economy today. Do you think another Great Depression is possible?

2. Suppose that you were in business and intended to build a plant to turn out a promising new item--say a pencil that would last twice as long as the kinds available now. What sorts of development might discourage you from making this investment? How much would your final decision hinge on what you anticipated for the future, compared with what you knew to be the situation today?

3. If your income (or your parents) were suddenly reduced to half, by how much would your expenditures fall? What sorts of businesses would be hit by your reduced spending? Would they, in turn, curtail their expenditures?6. Why is investment so critical in determining the level of prosperity?

Reference no: EM13844737

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