Question

Recessions resulting from financial crises a. Are more severe than recessions stemming from other causes but...

Recessions resulting from financial crises

a. Are more severe than recessions stemming from other causes but their recoveries are faster

b. Are less severe than recessions stemming from other causes but their recoveries are slower

c. Are more severe than recessions stemming from other causes but their recoveries are faster

d. Are more severe than recessions stemming from other causes and their recoveries are slower

Homework Answers

Answer #1

Option d is correct.Are more severe than recessions stemming from other causes and their recoveries are slower

Recession due to financial crisis causes loss of public money, banks become bankrupt, unemployment increases, the industrial growth decreases due to lack of funds. Instead of spending people try to save more money which decreases demand and this process takes a very long time to recover. This type of recession affects all.

Other type of recessions are not widespread and may come only during periods of war .

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