Chapter 11: The Great Depression and the New Deal

What is the main idea of the cartoon?

• President Roosevelt used a system of trial and error to mend the economy

• Congress and the President were unable to cope with the Great Depression

• President Roosevelt always followed the recommendations of the Congress

• The President and Congress constantly fought over Depression era programs

Which factor best explains the decline in number of bank failures by 1937?

• New banking laws restored public confidence in banks.

• Most people were too poor to have any bank savings

• The government was now operating all of the nation's banks

• Most Americans transferred their savings to foreign banks

Which was an effect of the Great Depression on the American economy?

• high unemployment and overproduction

• large business investments and low taxes

• too much money in circulation and high stock prices

• high unemployment and falling real estate values

Which was a guiding principle of New Deal economic policies?

• "Rugged individualism" will end social inequality

• government must assume greater responsibility for helping the unfortunate

• Pro business tax breaks would solve the problems of the Depression

• Antitrust legislation could destroy the free enterprise system

What was a major cause of the Great Depression?

• prior overproduction of manufactured goods

• a decrease in the supply of consumer goods

• an increase in demand for imported products

• an increase in the price of wheat on the world market

The cartoonist is commenting on President Franklin D. Roosevelt's efforts to-

• win Congressional approval for his Court-packing scheme

• gain Supreme Court support for his legislative program

• set up a retirement plan for Supreme Court Justices

• keep members of Congress off the Supreme Court

The New Deal changed American political thinking because it was based on the principle that the-

• economy will fix itself if left alone

• federal government should attempt to solve social and economic problems

• political parties must work together to deal with national problems

• states should take a leadership position in solving social issues

What problem were both the Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA) developed to address?

• excessive stock market speculation

• high unemployment

• increased use of credit

• limited income of senior citizens

What was Roosevelt's goal in creating the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC)?

• stimulate economic growth

• increase the government's tax revenue

• provide jobs for the unemployed

• restore the public's faith in financial institutions

Which economic factor contributed directly to the start of the Great Depression?

• low worker productivity

• decreasing tariff rates

• high income taxes

• buying stocks on margin