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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It regulated the stock market tightly
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It encouraged saving
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It encouraged the fair distribution of wealth
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It encouraged spending
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Detailed explanation-1: -The tariff created foreign retaliatory measures. Due to the price increase of consumer goods that resulted from the tariff, consumer spending drastically decreased. The decline led to the Great Depression, causing businesses to fail.
Detailed explanation-2: -The 1920s is the decade when America’s economy grew 42%. 1 Mass production spread new consumer goods into every household. The modern auto and airline industries were born. The U.S. victory in World War I gave the country its first experience of being a global power.
Detailed explanation-3: -Governmental economic policy during the 1920s was eminently conservative. It was based upon the belief that if government fostered private business, benefits would radiate out to most of the rest of the population. Accordingly, the Republicans tried to create the most favorable conditions for U.S. industry.
Detailed explanation-4: -Which of the following was the part of the federal government’s taxation policy during the 1920s that helped weaken the American economy? Taxes on wealthy Americans and businesses were reduced.