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Question: The 78% drop in the Nasdaq index was actually greater in real terms than the 90% drop in the Dow from 1929 to 1932. Yet the economy suffered only a brief recession and rebounded quickly. Why did this huge decline in stock prices have such a relatively small effect on the US economy in 2001-02 relative to 1929-32?

Microeconomics, Economics

  • Category:- Microeconomics
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