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America's Depression
Cause and Effect
| Question | Answer |
|---|---|
| Overproduction: Surplus of goods leads to ____________________(1) (Cause) | Falling prices |
| Overproduction: Falling prices leads to________________________(2) (Cause) | Companies losing money |
| Overproduction: Companies losing money leads to ___________(3) (Cause) | Workers losing jobs |
| October 29, 1929 - A "panic" (rush to sell) leads to a decline in stock prices. Billions of $$$$$$ lost. (Cause) | Stock Market Crash |
| What caused the banks to collapse during the Great Depression? | Banks lost the depositor's money to the collapsing stock market and the inability of customers to pay back their bank loans. |
| What were the main causes of the farming disaster during the Great Depression? | 1. Farmers borrowed money to buy land and equipment. They overproduced. Europe did not need our crops and farmers were stuck with surplus and bills. 2. The Dustbowl - Severe drought and poor soil management ruined millions of acres of farmland. |
| What were the main effects of the Great Depression? | 1. Unpopular government under Herbert Hoover. He raised taxes. 2. FDR was elected President. He promised America a New Deal. |
| What was the significance of the New Deal? | Government becomes actively involved in the lives of citizens like never before. |
Created by:
Barbara Conway
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