LHS U.S. History The Great Depression

Which factor contributed to the spread of the Great Depression overseas?

• Congress lowered tariffs on foreign imports

• American industry reduced production levels

• Europe increased trade to the United States

• the United States curtailed investment in Europe

In 1929, the stock market crashed because

• Germany ceased reparation payments to the United States

• the Federal Reserve increased the money supply

• investors lost confidence in the market and rushed to sell their shares

• depositors lost their investments and tried to withdraw all of the savings from banks

During the 1920's the United States economy moved through a which phase of the business cycle?

• peak

• expansion

• contraction

• trough

Which group experienced an early depression in the 1920's?

• stock market investors

• farmers

• industrial workers

• bank owners

European countries reacted to the Hawley-Smoot Tariff by

• increasing global trade

• lowering prices on European goods

• passing high protective tariffs

• importing more American goods

What event occurred on Black Tuesday?

• The Federal Reserve lowered interest rates

• Germany stopped reparation payments to the United States

• Unemployment reached nearly 25 percent

• investors sold more than 16 million shares of stock

Which of these factors helped hide economic problems in the 1920's?

• Wages increased at the same pace as worker productivity

• Farmers sold crop surpluses to pay off their debts

• Investors lost confidence in the market

• Americans purchased many consumer goods on credit

What does this photograph show?

• a Hooverville

• the stock market crash

• bank closures

• the Dust Bowl

People likely abandoned this place because

• they had lost their investments

• the banks and businesses had closed

• the land could not be farmed

• too many homeless people had moved there

Some Americans blamed the Great Depression on

• socialism

• facism

• capitalism

• communism