THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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their colonies were required to purchase goods from them
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neither had any significant involvement in international trade.
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the Great Depression affected only the United States, not Europe.
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both were highly industrialized and immune from economic problems.
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Detailed explanation-1: -Rearmament and recovery Due to the abandonment of the gold standard in 1931 Britain was able to cut interest rates which led to a drop in real interest rates. This drop in interests rates subsequently led to a boom in construction in the south of Britain; stimulating some renewed economic growth.
Detailed explanation-2: -Britain in late 1931 began a slow recovery from the crisis, partly prompted by its withdrawal from the Gold Standard and devaluation of the pound. Interest rates were also reduced and British exports were starting to appear more competitive on the global market.
Detailed explanation-3: -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-4: -Finally, France had had a positive balance of payments for some years thanks mainly to invisible exports such as tourism. French investments abroad were numerous.