THE GREAT DEPRESSION 1929 1940
PRESIDENT HERBERT HOOVER AND THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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both individuals and businesses built up large debts because of easy credit.
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tariffs on foreign imports were lowered.
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the federal government did not insure people’s bank accounts.
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None of the above
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Detailed explanation-1: -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.
Detailed explanation-2: -The Great Depression was a worldwide phenome-non, and the collapse of international trade was even greater than the collapse of world output of goods and services. Still, like the stock market crash, protectionist trade policies alone did not cause the Great Depression. Money makes the economy function.
Detailed explanation-3: -Lasting almost 10 years (from late 1929 until about 1939) and affecting nearly every country in the world, it was marked by steep declines in industrial production and in prices (deflation), mass unemployment, banking panics, and sharp increases in rates of poverty and homelessness.
Detailed explanation-4: -The Smoot-Hawley tariff was a foreign cause of the depression. The tariff charged a high tax for imports from foreign countries. Ultimately, the United States lost a lot of business from foreign businesses.