WORLD HISTORY

Detailed explanation-1: -The result was underconsumption of factory goods. Overproduction American businesses produced more goods than people wanted or could afford. Eventually, factories had to close and workers lost their jobs. Tight money supply After the stock market crash, Federal Reserve officials allowed the money supply to shrink.

Detailed explanation-2: -Essentially, companies could acquire money cheaply due to high share prices and invest in their own production with the requisite optimism. This overproduction eventually led to oversupply in many areas of the market, such as farm crops, steel, and iron.

Detailed explanation-3: -What were the major causes of the Great Depression? 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-4: -Overproduction and underconsumption of goods Businesses started to produce more than there was a demand for, which caused them to sell their products and services at a loss. This caused severe deflation, during the Great Depression. Because of deflation, many businesses shut down.

Detailed explanation-5: -The Stock Market Crashes! The 1920s, known as the Roaring Twenties, was a time of many changes-sweeping economic, political, and social changes. There were many aspects to the economy of the 1920s that led to one of the most crucial causes of the Great Depression-the stock market crash of 1929.