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the Great Depression

New Deal of 1933

QuestionAnswer
What was the four main reasons we had the Great Depression? Over production of agriculture, over production of merchandise, the stock market crash, and the buying of things on debit.
What does it mean to buy "on margin"? To buy on margin means that they only bought the stock for a fraction of the price and borrowed the rest from brokers. Brokers then borrowed money from the bank. If the stock made money, you could pay off your debt.
Why did we have a stock market crash? People started to get scared the boom would end and they tried to sell all their stock. When the sstock was sold, companies and investors lost money.Then brokers demanded their money but everyone was in debt.
How did Hoover react to the Depression? He believed it would be over soon, and he refused to lower prices and made the problem worse.
Created by: sjb12
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