THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
an increase in defense spending would stimulate the economy
|
|
|
unemployed workers should receive Federal unemployment benefits
|
|
|
the economy would recover on its own
|
|
|
the government should assume control of industry
|
Detailed explanation-1: -Bellringer: When the Great Depression began in 1929, the most common economic belief supported by the Republican Party was that A. an increase in defense.
Detailed explanation-2: -The Great Depression is attributed to the combination of the following factors: Tight monetary policies adopted by the Central Bank of America. Stock market crash of 1929. The failure of banks, which was the impact of the stock market crash as more people withdrew their savings from the banks leading to closure.
Detailed explanation-3: -In October, 1929, the bubble burst, and in less than a week, the market dropped by almost half of its recent record highs. Billions of dollars were lost, and thousands of investors were ruined. After the stock market crash, President Hoover sought to prevent panic from spreading throughout the economy.
Detailed explanation-4: -Keynesian economics is a macroeconomic theory of total spending in the economy and its effects on output, employment, and inflation. It was developed by British economist John Maynard Keynes during the 1930s in an attempt to understand the Great Depression.