Vocab Flashcards
Installment buying
You pay a down fee, then pay the rest over a long time period, like many months or even years
Credit
You pay for an item with money that you don’t have, then pay that money to the credit card company over time
“Bull market”
Charging forward, increasing (good)
“Bear Market”
Hibernating, slowing, dropping (bad)
“Buying on Margin”
Installment buying, but for stocks
Trickle-down economics
Gives tax cuts to the wealthy and businesses. The money will go into expansion, which creates more businesses, bigger business, and jobs. The downfall of this policy is that it didn’t work in the late 1920’s is that machines replaced jobs that would have been filled by workers. This was created by Andrew Mellon.
Dawes Plan
The idea of this plan was to help Germany, Great Britain, and France pay their debts, money would go around in a circle of loans. Americans actually lost money instead of gaining money on this plan because while being transferred to other currencies, the money lost value.
Hayley-Smoot Tariff Act
Raised taxes on imported goods. This makes the world to do the same, which triggers a trade war. As a result, foreign goods become very expensive all across the world.
Speculation
Risking money in hopes of making a big profit
Artificial inflation
The value of the product stays the same while the price goes up
Black Tuesday
OCTOBER 29, 1929. $4 billion is lost in stocks, fortunes are lost, and many decide to commit suicide.
Laissez-Faire
The government policy of leaving business alone
Mass production
New machines and technology allow for faster production
Credit and IB give a….
False sense of wealth
The Farming industry’s biggest hit
Europe no longer needed to import US food
