Causes of Great Depression

What contributed to factory layoffs and unemployment during great depression

• low tariffs

• stock market regulations

• overproduction of consumer goods

• new inventions

How did Europe respond to the U.S. Smoot-Hawley Tariff ( taxes)?

• made investments to gold

• increased their own tariffs/taxes rates

• exported more to the USA

• they allowed immigration from USA

How did the Smoot-Hawley Tariff of 1930 make Depression worse?

• Limited trade between USA and world

• American companies moved to Mexico

• stopped Europe from helping USA banks

What action by government helped cause Great Depression?

• stopping of taxes/tariffs

• removal of government deposits in private banks

• cut in tax rates for the richest people

• added interest rate on government loans

Why did Investors try to sell their stocks on October 1929?

• didn't want regulation of markets

• needed fast cash for new businesses

• lost confidence in stocks they owned

• thought banks were a better way for profit

Which of these describes credit crisis of Great Depression?

• causes Americans to invest in stocks more

• Americans wanted to deposit money in foreign banks

• led to bankruptcies and widespread bank failures

The United States economy in the 1920's was:

• not good for all Americans who didn't have money or prosperity

• most families lived well above poverty line

• New inventions caused a depression

During the 1920's companies sold shares of stocks primarily to:

• reduce taxes

• inflate profits

• get government loans

• raise money for improvements

Which statement describes U.S. economy during 1920's?

• Rate unemployment went up every year

• Richest people had to pay most taxes

• Small number of workers earned large share of nation wealth

Which thing most likely caused the bank failures at beginning of Great Depression?

• Rich moved money to foreign banks

• President Hoover stopped regulating banks

• Banks used deposits to make risky loans that were never paid back

• Investors stopped buying bank stocks