The Great Depression was a result of

(A) natural disasters

(B) ** human and government error

(C) caused by German Financiers who wanted to punish the Allies

(D) Communist who wanted to sabotage America


Concept note-1: -It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.

Concept note-2: -The Great Depression was not a failure of capitalism or of markets, but rather a result of misguided government policies-specifically, the Federal Reserve allowing the money stock to collapse as panics engulfed the banking system.

Concept note-3: -As stocks continued to fall during the early 1930s, businesses failed, and unemployment rose dramatically. By 1932, one of every four workers was unemployed. Banks failed and life savings were lost, leaving many Americans destitute. With no job and no savings, thousands of Americans lost their homes.

Concept note-4: -Contrary to popular opinion, the Great Depression was not caused by the stock market crash of 1929. Rather the consensus among economists is what made the Depression great in the U.S. were the mistakes made by the Fed-especially by its decision, in 1931 and 1932, to allow so many banks to fail.