Great Depression

What did American businesses do that would help lead to the Great Depression?

• Encourage the government to regulate them more

• Borrrow more money than they could hope to repay

• Import too many goods from overseas

What was the problem with the high tariffs imposed on foreign goods?

• It angered Americans

• It made Europeans reluctant to buy American goods

• It made American goods too expensive for Europeans

What was the goal of the Hawley-Smoot Tariff Act?

• To help Germany recover from the war

• To protect American farmers and manufacturers

• To encourage imports that help keep prices on products low

How did the tariffs backfire?

• Farmers and manufacturers began competing with each other

• Foreign nations couldn't sell their products here

• America couldn't sell its products abroad

What did foreign nations do in retaliation?

• Lowered their tariffs to encourage more American imports

• Imposed tariffs of their own

• Started WW II

What happened when the unemployment rate grew?

• American families bought even less

• Americans pulled their money from the banks

• American families bought more goods to ensure a strong supply when the economy got worse

How were people able to buy products they couldn't afford?

• Easily available credit

• Using the extra money that resulted from pay raises

• From savings

Banks suffered because of the...

• Stock market crash

• Easy credit

• Hawley-Smoot Tariffs

When the banks' customers tried to get their money

• Borrowed money using credit to give them their money

• The banks closed their doors and went out of business, leaving customers with nothing

• Sold them stock in the bank instead of giving them cash

By 1933, _____ of America's banks had failed

• 1/10

• 1/8

• 1/4

• 1/2