1. Why did the stock market boom in the 1920s? Why did it crash? 2 Explain and apply Robert Shler's concept of New Era Theories to the 1920s. What are the lessons here? 3. What problems did this historical episode reveal about the American and global economies? What are the weaknesses? Could they have been addressed? 4. In April 1930, what should Secretary Mellon and the Federal Reserve do? Outline the options available (both in the case and in hindsight) and offer recommendations. Additional Source for Presenters Robert J. Shiller Irrational Exuberance 3 edition. Princeton, NJ: Princeton University Press, 2015, 2000, pp. 123-149 (Ch. 7 "New Era Theories" focus on defining New Era Theories and on the 20s). In Canvas. Questions for Quiz (Everyone answers these. You may work with one other person and turn in a single copy. The presenting group may tum in a single quiz for the entire group. Must be typed to receive credit.) 1. Why did the Roaring 20s "roar"? Give two major explanations. 2. In your view, which argument best explains the rise of the stock market: (a) institutional disfunction and speculation, or (b) rational expectations of growth? Explain your reasoning fully based on the case. 3. Explain two findings from examining the Exhibits at the end of the case. What do you find most interesting or surprising here? Sel 1. Why did the stock market boom in the 1920s? Why did it crash? 2 Explain and apply Robert Shler's concept of New Era Theories to the 1920s. What are the lessons here? 3. What problems did this historical episode reveal about the American and global economies? What are the weaknesses? Could they have been addressed? 4. In April 1930, what should Secretary Mellon and the Federal Reserve do? Outline the options available (both in the case and in hindsight) and offer recommendations. Additional Source for Presenters Robert J. Shiller Irrational Exuberance 3 edition. Princeton, NJ: Princeton University Press, 2015, 2000, pp. 123-149 (Ch. 7 "New Era Theories" focus on defining New Era Theories and on the 20s). In Canvas. Questions for Quiz (Everyone answers these. You may work with one other person and turn in a single copy. The presenting group may tum in a single quiz for the entire group. Must be typed to receive credit.) 1. Why did the Roaring 20s "roar"? Give two major explanations. 2. In your view, which argument best explains the rise of the stock market: (a) institutional disfunction and speculation, or (b) rational expectations of growth? Explain your reasoning fully based on the case. 3. Explain two findings from examining the Exhibits at the end of the case. What do you find most interesting or surprising here? Sel