Great Depression New Deal Practice

The economic good times of the 1920s became threatened by ��

• too much wealth being concentrated in the hands of farmers
• a lack of credit and a steady decline in worker productivity
• restrictions that limited how many stocks an individual could own
• uneven distribution of wealth and growing consumer debt

One of the main reasons for the 1929 stock market crash was that ��

• stock prices had been too tightly controlled by the government
• too few people had been investing in the stock market
• investors had not been allowed to borrow money to pay for stocks
• stock prices had risen too high because of speculation

After the stock market crash, America��s banking sector ��

• thrived as people transferred stock profits into savings accounts
• collapsed as frightened depositors raced to withdraw their money
• profited as the Federal Reserve limited the money supply
• went broke by lending to investors recovering from the crash

The Hawley-Smoot Tariff helped spread the depression globally because ��

• it drastically reduced the price of foreign goods
• it caused American goods to flood European markets
• European countries retaliated with their own protective tariffs
• Americans responded to it by refusing to ship goods overseas

The Great Depression forced many Americans to live in shantytowns known as ��

• tenant farms
• Okies
• speakeasies
• Hoovervilles

In the early 1930s, many farmers lost their land because they ��

• could not keep up with the growing demand for their crops
• could not earn enough from farming to pay their mortgages
• paid off their mortgages too quickly, resulting in heavy bank fines
• refused to grow the crops that Americans wanted to purchase

The factors that brought about the devastation in the Dust Bowl ��

• were strictly a result of natural causes, not human practices
• included drought, high winds, and farming methods
• were all a result of unwise agricultural practices
• included the damming of western rivers and over-irrigation

The Great Depression led to high unemployment as many companies ��

• closed to punish workers for causing the stock market crash
• lost their workers to farming, which offered better pay
• moved their production to Asia, where labor costs were lower
• instituted production cutbacks, which led to major layoffs

At first, what did President Hoover rely on to relieve the depression?

• Federal money and government grants
• Laws forbidding businesses to fire workers
• Volunteerism and localism
• Mandatory unionization in all factories

President Hoover expected the Reconstruction Finance Corporation to ��

• succeed without any funding from the government
• get Americans back to work through trickle-down economics
• provide homeless people with small loans to buy new housing
• subsidize workers willing to relocate to the Dust Bowl