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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Americans building up personal debt
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Banks making lots of very safe loans
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Americans refusing to play the stock market
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A lack of developed farmland in the Midwest and Great Plains
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Detailed explanation-1: -The easy availability of credit during the 1920s led to an increase in debt.
Detailed explanation-2: -It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.
Detailed explanation-3: -The economic trends of the 1920’s that helped cause the Great Depression were, the people’s extreme faith in the economy. Everyone was spending their money freely, and believing they would get paid back. Which left to the inevitable demise of the economy failing, and the people losing their money with no savings.
Detailed explanation-4: -The U.S. economy shrank by a third from the beginning of the Great Depression to the bottom four years later. Real GDP fell 29% from 1929 to 1933. The unemployment rate reached a peak of 25% in 1933. Consumer prices fell 25%; wholesale prices plummeted 32%.
Detailed explanation-5: -Which statement best describes the American economy in the late 1920s? High tariffs stimulated international trade.