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______________________________: buying on credit Buyers could take home a new fridge by putting a ________________________________ on it E ach month they paid an installment until they had paid the full price PLUS INTEREST “___________________________________” increased the demand for goods.

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PowerPoint Slideshow about 'More Money, More Problems' - aaron-barton


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more money more problems

______________________________: buying on credit

  • Buyers could take home a new fridge by putting a ________________________________ on it
  • Each month they paid an installment until they had paid the full price PLUS INTEREST
  • “___________________________________” increased the demand for goods

_________________:

monetary dues owed over time as a result of credit

Remember Bull vs. Bear?

  • Soaring Stock Market:
  • - Boom of the 20s gave the stock market a giant boost
  • - Corporations sold __________: shares of ownership sold to investors
    • * Investors made or lost $$ depending on whether the price of shares went ____or _____

More Money, More Problems

  • Bull Market:
  • By late 20s, more people were investing in the stock market than ever
  • Stock prices rose so fast some people made fortunes overnight (this encouraged more to buy)
  • Bull market: ______________________________________________________________________________________
  • Many people bought stocks on a margin system:
  • An investor would buy stock for as little as 10% down payment
  • The buyer held the stock until the ____________& then sold it at profit
  • Margin buying worked as long as _______________ kept going ____
  • Problems Rising:
  • - In 1928 & 1929 – prices of many ______________rose faster than the value of the _____________themselves
    • * Experts warned that the bull market couldn’t last forever
    • * Most ____________ ignored the warnings
  • Limited Role in World Affairs:
  • - After WW1, U.S. was world’s leader in ________________ power
  • - Europeans expected U.S. to take a major role in world affairs
  • Harding & Coolidge wanted to continue peace in Europe,
  • however they didn’t want the job of ______________world peace
  • - Many Americans supported this return to prewar _______________
  • Latin America:
  • - During WW1 LA nations had been cut off from __________
  • Result: U.S. trade/ investment in LA increased
  • Trade continued after war
  • U.S. limited its role abroad for fear that more involvement may ___________________________________________________
slide2

Soviet Union:

  • - Lenin is now the big cheese in ______________ since the revolution
  • Lenin created the world’s first communist state
  • ________________: economic system in which all wealth & property are owned by the community as a whole
  • U.S. refused to recognize Lenin’s government & disliked the idea of communism
  • Pursuing Peace:
  • - Post WW1 many people favored ____________________: a reduction in the armed forces & weapons of war
  • - Harding & __________________________also supported peace efforts