The Nation's Sick Economy- Start of the Great Depression

What effect did the Great Depression have on the American Economy?

• It led to high unemployment and underproduction

• It brought about large business investments and low taxes

• It created too much money in circulation and high stock prices

• It increased employment and real estate values

Why was much of the prosperity of the 1920s more superficial than real?

• Many people were living beyond their means.

• Many people were relocating from farms to the cities

• Many people were becoming wealthier in the stock market.

• Many people were benefiting from increased jobs after the war.

Although many Americans appeared to be prosperous during the 1920s, in fact they were living beyond their means. They often bought goods on credit—an arrangement in which consumers agreed to buy now and pay later for purchases. This was often in the form of an installment plan (usually in monthly payments) that included interest charges

During the 1920s, many Americans appeared to be prosperous but in fact, many of them were buying on________ with money that they did not have.

• Credit

• Profit

• Margin

• Stocks

What was one problem with speculation?

• The rising stock prices did not reflect the actual worth of companies.

• The government was prohibited from regulating the prices on stocks

• The rich kept getting richer since they were the only ones who could buy

  Stocks

• The stock traders were unable to get the best deals for their clients because too

  many stocks were available

Why was Black Tuesday such a significant day in American history?

• It was the day when the stock market crashed.

• It was the day when the Fed set the first monetary policies.

• It was the day when the idea of speculation was first introduced.

• It was the day when stock prices reached their highest rate of exchange

Great Depression

• The stock market crash signaled the beginning of this period of time that lasted from 1929 through the 1930’s

• Paying a small percentage of a stock’s price as a down payment and borrowing the rest

• The practice of buying stocks and bonds on the chance of a quick profit, while ignoring the risks

• The most widely used barometer of the stock market’s health

Who was the President of the United States when the Stock Market crashed?

• Franklin D. Roosevelt
• Herbert Hoover
• Woodrow Wilson
• Theodore Roosevelt

Tags

CCSS.RL.7.9

CCSS.RL.8.9

Term used to describe the stock market when it is doing well or gaining wealth

• "Can't Touch This" Market

• Bear Market

• Bull Market

• Happy Market

When was Black Tuesday?

• October 24, 1929

• October 29, 1929

• December 7, 1941

• March 26, 2019

An agreement in which consumers agree to buy now and pay later. Usually in the form of the installment plan.

• Credit

• Speculation

• Buying on Margin