The Great Depression

What was the Great Depression?

• A period of economic success and an improving economy

• The worst economic catastrophe in U.S. history

• A period of time that witnessed American involvement in violent foreign wars

• A hotly contested presidential election

How did an economic recession help cause the Great Depression?

• Americans bought less, causing less demand for goods

• Bank runs caused depositors to withdraw all their money from banks

• The market bubble popped, crashing Wall Street

• Low interest rates encouraged risky speculation

What is a recession?

• Risky speculation on Wall Street

• When bank depositors withdraw all their money

• A period of economic downturn

• A period of economic upturn

What caused many farmers to foreclose on their farms in the 1930s?

• Growing too few crops

• Overproduction of crops and costs of machines

• Expensive land and not enough workers

• The Wall Street Crash

What forced banks to close during the Great Depression?

• Huge amounts of inflation

• War in Europe

• Investors unable to pay loans and bank runs

• Not enough people invested in the Stock Market

Why did the stock market collapse in 1929?

• Only wealthy Americans invested in the stock market

• Investors inflated prices, and then sold shares very cheap, losing money

• Investors refused to invest in the stock market

• Investors bought shares cheap, and then sold stocks at a high price

Which TWO answers best describe President Herbert Hoover's presidency during the Great Depression?

• A very hands-on government

• Mostly hands-off government

• Largely unable to better economic conditions

• Created many New Deal programs

Which TWO answers best describe Franklin D. Roosevelt's presidency during the Great Depression?

• Very active hands-on gov't with business

• Mostly hands-off gov't with business

• Created many New Deal Programs

• Created a tariff that hurt American economy

What did RRR stand for in Roosevelt's New Deal?

• Revert, Reduce, Recover

• Restore, Recover, Readjust

• Relief, Recovery, Reform

• Reform, Restore, Reclaim

What was Roosevelt's New Deal?

• A series of government-funded bail outs

• A series of federally funded public works programs

• A hands-off approach to business and the economy

• A series of voluntary business recovery acts