Question

All of the following are true about the "New Economy" of the 1990s, except...

O There would no longer be any major economic downturns
O Low inflation kept the dollar strong
O Low interests rates encouraged investment and borrowing
O Low energy prices kept shipping costs low

Answer 1

The statement "There would no longer be any major economic downturns" is false about the "New Economy" of the 1990s. The 1990s saw a period of economic growth and prosperity, but it was not immune to economic downturns. For example, the Asian financial crisis in 1997 and the dot-com bubble burst in 2000 both had significant impacts on the global economy.