Understanding the Great Depression

What does the term 'Great Depression' inaccurately suggest according to the narrator?

• It was a significant global event

• It was a joyful time

• It was a time of widespread prosperity

• It was a period of great economic growth

What was a major factor contributing to the economic conditions before the 1929 crash?

• Credit and installment buying

• Decrease in agricultural production

• High government regulation

• Low consumer spending

Which sector was heavily affected throughout the 1920s leading to economic instability?

• Automotive

• Real estate

• Agriculture

• Technology

What role did credit play in the economic conditions leading up to the Great Depression?

• It was restricted to the wealthy

• It was largely unused

• It stabilized the economy

• It led to unsustainable buying habits

What started the wave of bank failures in 1930?

• Bank runs in Louisville

• Government policies

• Stock market crash

• Increase in interest rates

What was a direct consequence of banks failing during the Great Depression?

• Rise in consumer spending

• Stabilization of the stock market

• Credit freeze leading to economic collapse

• Increase in global trade

What was the effect of the Federal Reserve not rescuing failing banks?

• It contributed to the economic collapse

• It increased consumer confidence

• It prevented inflation

• It led to a quick economic recovery

Why did the Hoover administration not engage in Keynesian economic policies?

• Lack of political support

• Keynes' theories were not yet published

• Belief in minimal government intervention

• Hoover's personal disagreement with Keynes

What was the primary effect of the Hawley-Smoot Tariff?

• It improved global trade relations

• It led to increased American exports

• It caused retaliatory tariffs from other countries

• It stabilized the American banking system

What global event did Herbert Hoover blame for the Great Depression in his memoirs?

• The rise of industrialization

• The signing of the Versailles Treaty

• The establishment of the Federal Reserve

• World War One