AGD2B

2. How did governments respond to the problem?

- Britain made a national government to make the nation's economy revive

-regulates currency to prevent deflation or inflation

-high tariffs to encourage British to buy Britain goods

-lowered interest rates to further encourage industrialization

-increased payments and holidays with pay and forty hour work week

-socialist government in Sweden sponsor public works to get people employed

- Socialist gov. in Scandinavian countries increased welfare benefits

-roosevelt in america provided a system called "new deal" and this provided jobs for the unemployed and financial support to businesses and farms

-government regulate the stock market buyers to buy with real money not by credit