American History Chapter 14 Study Guide

The causes of the Great Depression include:

• Stock market crash, bank failures, reduction in purchasing, American economic policy with Europe, and drought conditions.

• Rapid industrialization, technological advancements, increased consumer spending, and global peace.

• Discovery of oil, expansion of railroads, rise in agricultural production, and strong banking system.

• High employment rates, stable currency, international cooperation, and surplus trade.

2. How did consumers make the depression worse during the 1930s?

• Consumers stopped buying goods, which led to decreased production and increased unemployment.

• Consumers increased their spending, causing inflation.

• Consumers invested heavily in the stock market, causing prices to rise.

• Consumers demanded higher wages, leading to labor strikes.

The McNary-Haugen Bill was:

• A bill to subsidize American agriculture by raising the domestic prices of farm products.

• A bill to lower tariffs on imported goods.

• A bill to regulate banking practices.

• A bill to provide free land to settlers.

During the 1920s in the U.S., the distribution of wealth changed in which way?

• Wealth became concentrated in the hands of a few, leading to economic imbalance.

• Wealth was evenly distributed among all citizens.

• The middle class gained most of the wealth.

• Wealth decreased for everyone equally.

The accumulation of wealth by a few people is a problem for an economy because it:

• reduces the purchasing power of the majority, leading to less demand and economic stagnation.

• increases the purchasing power of the majority, boosting economic growth.

• ensures equal distribution of resources among all citizens.

• creates more job opportunities for the majority.

6. The rise in consumer debt eventually hurts the economy by:

• Increasing consumer spending and boosting economic growth.

• Consumers being unable to pay back loans, leading to bank failures and reduced spending.

• Reducing interest rates and encouraging more borrowing.

• Improving credit scores for most consumers.

Hoover was elected president in 1928 because he was seen as a successful businessman and promised continued prosperity.

• He was seen as a successful businessman and promised continued prosperity.

• He was a famous war hero from World War I.

• He promised to end Prohibition immediately.

• He was endorsed by the previous president for his foreign policy.

8. Black Tuesday occurred on:

• October 29, 1929.

• September 15, 1930.

• November 11, 1928.

• August 24, 1931.

The Hawley-Smoot Tariff did which of the following to the economy?

• It worsened the depression by reducing international trade.

• It improved the economy by increasing exports.

• It had no effect on the economy.

• It ended the depression by boosting domestic production.

10. The event that signaled the start of the Great Depression was:

• The stock market crash of 1929.

• The end of World War I.

• The signing of the Treaty of Versailles.

• The discovery of gold in California.