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Unit 4 Lesson 1 Notes 2 Vocabulary

Loan The act of lending money to someone or a group of people. The receivers pay back the loan with an extra fee called interest.
Consumerism A type of consumer spending; US individuals spend more money because an economy offers numerous new inventions and products.
Over-production An excess amount of goods that leads to lower prices or a lot of unsold goods. Businesses produce goods that people can't buy.
Under-consumption A situation where people are buying far less in an economy, which results in business depression (or a loss of money).
Stock Market A place where every day people/investors can buy stock in businesses. When someone owns stock/shares in a business they are considered part of the company. If businesses do well, investors make money. If businesses do poorly, investors lose money.
Stocks Shares of a company that are sold to investors in order to raise money for the company in the hopes that the company's overall value will increase.
Investors People who put their money into the stock of a company in the hope of the stock value increasing.
American Dream The belief that every American can work hard to get what they want.
Old Industries Older Industries such as mining and textiles where wages were low. 
Roaring Twenties A boom time when consumerism encouraged people to buy on credit, and new music, dances, and entertainment helped people celebrate the end of WWI and their success.
Herbert Hoover President of the United States from 1929-1933 who believed in laissez-faire economic policies that took a hands-off approach to the economy.
Unemployment State of being unable to find a job when you are actively searching for one.
Created by: jhanes2


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