Lesson 69 - unit 14

Question 1

What was the overall trend of economic activity in the U.S. during the 1920s?

Answer 1

Wages and stock prices rose, businesses grew and consumer buying increased (significant growth).

Question 2

What is buying stock on margin?

Answer 2

When you only put down 10-25% of the stock value and borrow the rest from a broker.

Question 3

How much of its value did the stock market lose by November of 1929?

Answer 3

40%

Question 4

What were 2 main factors in the failure of many banks?

Answer 4

1. The Fed didn’t maintain an adequate supply of money
2. banks operated on fractional reserve and depositors demanded their money in cash

Question 5

What was the effect of the Smoot-Hawley tariff?

Answer 5

A sharp drop in trade with other countries which hurt the economy.

Question 6

When did production and employment increase significantly?

Answer 6

WWII.

Question 7

What was the impact of the New Deal in ending the Great Depression?

Answer 7

Some say it was the reason for the long recovery and some say it is why the Great Depression ended.

Question 8

What does Russell Kirk say about the circumstances of people with reduced incomes during 1929-1933?

Answer 8

They were not as desperate as we are led to believe.

Question 9

What does Kirk say about the likelyhood of revolution in the U.S. in the early 1930s?

Answer 9

That is was not likely.

Question 10

Who were opposing groups in a confrontation in East Lansing, Michigan 1937?

Answer 10

Michigan State College and the UAW.