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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Europeans nations were oversupplying Americans with wheat and corn
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Overproduction continued when people had no money to buy products
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Transportation came to a standstill, which reduced the amount of food to cities
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Farms were changing from large institutions to family-owned enterprises
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Detailed explanation-1: -Answer: Panic selling began on “Black Thursday, ” October 24, 1929. Many stocks had been purchased on margin-that is, using loans secured by only a small fraction of the stocks’ value. As a result, the price declines forced some investors to liquidate their holdings, thus exacerbating the fall in prices.
Detailed explanation-2: -During the Great Depression, which occurred from 1929 to 1933, many Americans lost all of their money and were not able to get jobs. Therefore, they were not able to buy food. Since most people did not have enough money to shop for food, there wasn’t enough business to keep most of the groceries fully stocked.
Detailed explanation-3: -First, people who had money invested in the stock market lost much of their savings during the Wall Street Crash of 1929. This caused them to spend less, which created lower demand for goods and services. With businesses seeing a fall in spending, they cut back on output and employed fewer workers.
Detailed explanation-4: -The poor congregated in cardboard shacks in so-called Hoovervilles on the edges of cities across the nation; hundreds of thousands of the unemployed roamed the country on foot and in boxcars in futile search of jobs. Although few starved, hunger and malnutrition affected many.