USA HISTORY

AMERICAN IMPERIALISM(1890 1919)

TREATY OF VERSAILLES

[SOURCES]
Which situation was a major cause of an economic depression in Europe after World War I?

(A) the crash of the United States’ stock market in 1929

(B) ** the high cost of the war and the loss of jobs as wartime production stopped

(C) the lack of resources from countries controlled by European nations

(D) the assassination of Archduke Franz Ferdinand

EXPLANATIONS BELOW

Concept note-1: -The stock market crash of October 1929 led directly to the Great Depression in Europe.

Concept note-2: -One thing that triggered the Great Depression was the crash of the stock market on Tuesday, October 29, 1929. The value of stocks suddenly fell to very low levels. Some even lost all their value. This day is commonly called “Black Tuesday."

Concept note-3: -What were the major causes of the Great Depression? Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.

Concept note-4: -The Depression of 1920–1921 was a sharp deflationary recession in the United States, United Kingdom and other countries, beginning 14 months after the end of World War I. It lasted from January 1920 to July 1921.