HISTORY
THE WORLD BETWEEN THE WARS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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causing falling prices on goods.
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forcing a decrease in mechanization.
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leading to more spending than saving.
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scaring farmers into growing fewer crops.
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Detailed explanation-1: -The first underlying cause of the Great Depression was underconsumption and overproduction. Many things contributed to the underconsumption of goods. The production line kept producing goods even when people could not afford to buy them. This created extra goods lowering the prices of the goods.
Detailed explanation-2: -Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.
Detailed explanation-3: -Under-consumption is the purchase of a lower price than the demand and it was one of the factors that led to the Great Depression and the Stock Market Crash of 1929. Business reduced regulations and lower taxes to increase the profits of their stocks, but people still were unable to afford to purchase them.
Detailed explanation-4: -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. Business failures and closings caused people to lose jobs, contributing the to the high unemployment rate.