The Great Depression

The maintenance of a price at a certain level through government intervention.

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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.

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Who won the presidential election of 1928?

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This is a measure based on the prices of stocks of 30 large companies trading on the New York Stock Exchange- widely used as a barometer of the stock market’s health.

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An involvement in risky business transactions in an effort to make a quick or large profit.

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

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A name given to October 29, 1929, when stock prices fell sharply.

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The period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed.

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How did the economic trends of the 1920s help cause the Great Depression?

Answer explanation

Industries lost revenue as there was less demand for their goods during peacetime. Key businesses like railroads and textiles were barely making a profit.

In agriculture international demand for crops fell, farmers went bankrupt as a result, and rural banks failed.

For consumers, their credit debt proved disastrous when the banks failed.

The unequal distribution of income was also an issue. Between 1920 and 1929, the income of the wealthiest 1 percent of the population rose by 75 percent, compared with a 9 percent increase for Americans as a whole.

Little towns consisting of shacks. Also called Hoovervilles.

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