Crash Course US 33

What was one of the main reasons for the economic instability in the 1920s?

• High agricultural prices

• Sustainable credit usage

• Large-scale domestic consumption fueled by credit

• Decrease in consumer products

What was a significant factor that led to the failure of many banks during the Great Depression?

• Stable credit system

• High inflation rates

• Excessive government intervention

• Small banks relying on their own resources

Why is deflation considered worse than inflation during an economic crisis?

• It increases the money supply

• It causes businesses to cut costs and lay off workers

• It stabilizes the economy

• It leads to higher prices

What was one of the global impacts of the Great Depression mentioned in the video?

• Increased global trade

• Rise in American exports

• Economic stability in Europe

• Collapse of industrial economies in Germany, France, and Britain

What was one of Herbert Hoover's measures to address the Great Depression?

• Immediate abandonment of the gold standard

• Creation of the Reconstruction Finance Corporation

• Reduction of public works expenditures

• Increase in private charity only