The Great Depression and New Deal

Which was NOT a sign of economic weakness in the 1920s?

• Slowing of the Housing Market

• Uneven distribution of income

• Increasing amounts of people defaulting on loans

• Unemployment rate dropping

Which of these compounded the losses of the Stock Market Crash?

• People had bought stock on margin

• People had savings accounts outside the stock market

• People had started to mistrust banks and already had money

• People had bought stock in different cities

This happens in an economic downturn...

• Interest rates for loans increase

• People leave the country for better opportunities

• Unemployment rises

• Federal government raises taxes

Which was NOT a cause of the Great Depression?

• High tariffs on foreign goods

• Stock Market Crash

• Easy availability of credit

• The US abandoning the Gold Standard

Why did the Hawley-Smoot tariff backfire?

• Europe wouldn't trade with the U.S.

• The tariffs weren't high enough to make a real change

• The tariffs caused Americans to only buy foreign goods

• It bolstered other country's economies

Why is buying on margin risky?

• Your stock portfolio won't be diverse enough

• Banks won't accept your money

• If the stock market crashes, the money you borrowed is gone

• It is illegal in every state except New York.

What happened on Black Friday, 1929?

• Babe Ruth hit a home run to win the Yankees a World Series

• Major sales in department stores, the day after Thanksgiving

• Riots in New York City

• The Stock Market crashed

Which President is well known for his belief in Rugged Individualism? (Laissez-Faire)

• Calvin Coolidge

• Woodrow Wilson

• Franklin D. Roosevelt

• Herbert Hoover

How would Rugged Individualism get the U.S. out of the Great Depression?

• People would take up more blue collar jobs

• One wealthy tycoon would spread his wealth to others

• Consumers and producers would lead the way without government intervention

• The government would spend money on works programs to create employment

What was the result of Hoover's response to the Bonus Army protesters?

• His popularity declined

• His popularity increased, especially among the military

• People stopped protesting

• Protesters were given their demands