Why do all market economies have taxes to support armed forces, police forces, public schools, and at least some form of public transportation? socialist propaganda has convinced other countries that market economies really do not work well. public services are very profitable. businesses always encourage more government services and the wealthy are never opposed to high taxes. all countries have discovered that profits will motivate firms to solve most, but never all, of their economic needs.

During the 1920s, the federal reserve increased the money supply and kept interest rates very low, encouraging consumer spending and the brisk borrowing of money. business investment and the expansion of businesses grew rapidly during the 1920 to meet the needs of this huge consumer spending. however, during the crash of 1929, the federal reserve reversed its expansionary monetary policy and cut off the money supply by almost 30%, causing banks to not have enough currency on hand when depositors wanted their hard-earned money. after reading the prompt, what can you surmise happened next that contributed to the great depression? a) black tuesday b) collapse of banks c) high unemployment d) election of franklin d. roosevelt