Causes of the Great Depression

This is the process of taking money borrowed from the bank or a broker, and putting it into the stock market

• Buying on Margin 
• Speculation 
• Buying on Credit 
• Overconsumption 

This is the idea that the rich become richer, while the poor become poorer

• Black Tuesday 
• Speculation 
• Unequal distribution of wealth
• Buying on Credit 

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A sudden dramatic decline of stock prices, resulting in a significant loss of wealth.

• Bull Market 
• Speculation 
• Bank Run 
• Stock Market Crash 

This cause led many businesses to close, because they were producing more goods than consumers were willing to buy.

• Overproduction 
• Overconsumption 

• Buying on Credit 
• Stock Speculation 

What happened to many people who saved money in banks?

• They grew rich.
• They made counterfeit money.
• They saved a lot of money.
• They lost everything.

What happens when tariffs are added to imported products?

• The price of the imported product is determined by demand.
• The price of the imported product remains the same.
• The price of the imported product goes down.
• The price of the imported products goes up.

An effect of the Great Depression was...

• Everyone bought more stocks.

• Large numbers of people were hungry and homeless.

• Farmers became rich.

• Many people moved to the South during the Great Migration.

What happens to the value of your crops when you continue to overproduce them?

• The value increases.
• The value stays the same.
• The value decreases.
• Farmers become rich.

How did the American economy of the 1920s differ from the economy of the 1930s?

• The 1920s saw increased consumer borrowing and speculation, while the 1930s saw a rise in unemployment and business failures

• The 1920s saw a decrease in consumer borrowing, while the 1930s witnessed prosperity and success in the U.S. economy

• The 1920s saw a large increase in unemployment, while the 1930s saw a sharp decline in unemployment and homelessness

• The 1920s saw a marked increase in the role of government, while the 1930s saw a reversal of this trend.

How did the raising of U.S. tariffs expand the worldwide depression?

• Other nations retaliated and world trade became even worse

• Other nations fell behind competitively without such tariffs

• Though demand for U.S. exports increased, payments fell behind

• U.S. imports increased sharply, leading to further unpaid debt