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Question 1

Causes of the Great Depression

Answer 1

-Too much buying on credit
-Overproduction
-Less consumer spending
-Falling stock values and buying stock on margin
-Some banks were collapsing
-Stock market “crashed”

Question 2

Black Tuesday (October 29, 1929)

Answer 2

Stock market crashed and contributed to the Great Depression.

Question 3

Banks collapse

Answer 3

One of the first things to feel the stock market crash was banks. People panicked and ran to banks to withdraw their money. This causes banks to fail and close up.

Question 4

“Hoovervilles”

Answer 4

Shanty towns that the unemployed built in the cities during the early years of the Depression. The name given to them shows that the people blamed Hoover directly for the Depression.

Question 5

President Hoover

Answer 5

Very unpopular Republican President who did not believe the government should intervene in the depression.

Question 6

Bonus Army (1932)

Answer 6

Facing the financial crisis of the Depression, World War One veterans tried to pressure Congress to pay them their retirement bonuses early. Congress considered a bill authorizing immediate assurance, but it was not approved. Hoover called in the army to get the veterans out of Washington that did not leave after being told to. The public was angry that President Hoover used troops against veterans and their families.

Question 7

President Hoover’s response to the Great Depression

Answer 7

-At first, he felt this was just a short recession and the economy would recover soon. Later on, he want state/local governments and businesses to lead the relief efforts. Finally, the federal government used $4 billion dollars to support businesses. He administration felt that if businesses hired more workers that the economy would recover. It was “too little, too late.”