WORLD HISTORY

Detailed explanation-1: -After the stock market crash of 1929, the American economy spiraled into a depression that would plague the nation for a decade.

Detailed explanation-2: -The causes of the Great Depression included the stock market crash of 1929, bank failures, and a drought that lasted throughout the 1930s. During this time, the nation faced high unemployment, people lost their homes and possessions, and nearly half of American banks closed.

Detailed explanation-3: -After the fall of France in June 1940, the United States increasingly committed itself to the fight against fascism. Ironically, it was World War II, which had arisen in part out of the Great Depression, that finally pulled the United States out of its decade-long economic crisis.

Detailed explanation-4: -According to a 1989 analysis by Milton Friedman and Anna Schwartz, the recession of 1920–1921 was the result of an unnecessary contractionary monetary policy by the Federal Reserve Bank. Paul Krugman agrees that high interest rates due to the Fed’s effort to fight inflation caused the problem.

Detailed explanation-5: -A Saturated Market. The pro-business policies of the 1920s were designed for an American economy built on the production and consumption of durable goods. Yet by the late 1920s, much of the market was saturated, meaning product supply exceeded demand.