Great Depression

In the 1920's, the United States economy was in which phase of the business cycle?

• Expansion

• Contraction

• Trough

• Peak

What caused the stock market to crash?

• Germany discontinued reparation payments

• Investors lost confidence in the market

• The Federal Reserve increased the money supply

• Russian hackers were to blame

What factor helped hide economic problems of the 1920's?

• Ease of buying products on credit

• Buying stocks on margin

• Consumers purchased goods at a rapid rate

• All of the above

What did John Maynard Keynes believe caused the Great Depression?

• Too much oversight in the banking system

• Strict controls on stock speculation

• Limits on consumer spending

• Lack of government intervention

How did farmers contribute to the Dust Bowl?

• Putting down new topsoil

• Invasive farming practices that cut down protective grasses

• Not investing in the stock market

• Moving off the plains

The cautious response to the Great Depression by President Hoover was because

• Was distracted by giant dust storms in the Great Plains

• Believed the Great Depression was good for America

• He believed the business cycle would correct itself

• He did not have enough knowledge of business to fix it

Banks were the first to feel the effects of the stock market crash because

• Banks ran the stock market exchange

• None of the above

• Interest rates increased but banks refused to loan money

• People lost confidence in the economy and withdrew money

Why did Americans feel the need for new leadership in 1932?

• Hoover's volunteerism and economic policies failed

• Prices on farm products were rising

• Hoover moved to California because of the Dust Bowl

• Hoover gave WWI veterans their bonuses early

Families abandoned areas during the Dust Bowl because

• Too many homeless people now lived there

• They lost their investments

• The land could not be farmed

• Banks and businesses closed

Most Dust Bowl migrants moved where?

• California

• Kansas

• Colorado

• Texas