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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The 1920s saw increased consumer borrowing and speculation, while the 1930s saw a rise in unemployment and business failures
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The 1920s saw a decrease in consumer borrowing, while the 1930s witnessed prosperity and success in the U.S. economy
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The 1920s saw a large increase in unemployment, while the 1930s saw a sharp decline in unemployment and homelessness
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The 1920s saw a marked increase in the role of government, while the 1930s saw a reversal of this trend.
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Detailed explanation-1: -How did the American economy of the 1920s differ from the economy of the 1930s? The 1920s saw a marked increase in the role of government, while the 1930s saw a reversal of this trend.
Detailed explanation-2: -How was the American economy during the 1920s different from that of Europe? After the war, the United States had a booming economy. Unemployment was low, and Americans secured loans to purchase new consumer goods such as cars and radios. In Europe, however, the war had taken its toll.
Detailed explanation-3: -Financial innovations allowed exuberant investment in the stock market, which supported rapid growth for many companies and the labor sector. But that same exuberance led to asset bubbles and an overheated economy. That eventually burst in 1929, signaling the Great Depression of the 1930s.
Detailed explanation-4: -International trade fell by more than 50%, unemployment in the U.S. rose to 23% and in some countries rose as high as 33%. Cities around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries.
Detailed explanation-5: -Investing in the speculative market in the 1920s led to the stock market crash in 1929, which wiped out a great deal of nominal wealth. Most historians and economists agree that the stock market crash of 1929 wasn’t the only cause of the Great Depression.