New Deal and Depression I think????

Question 1

Causes of depression

Answer 1

Wall street crash
uneven distribution of income
stock market speculation
excessive use of credit
overproduction
weak farm economy
government policies

Question 2

Wall Street crash

Answer 2

after boom- unprecedented volume of selling on Black Thursday, which continued

Question 3

uneven distribution of income

Answer 3

wages had risen relatively little compared to large increases in productivity and corporate profits
income inequality between rich and poor

Question 4

stock market speculation

Answer 4

speculating that price of a stock would go up and that they could sell it for a profit
buying on margin allowed people to borrow most of the cost of the stock, investors depended on price of stock increasing so they could repay loan

Question 5

excessive use of credit

Answer 5

low interest rates, belief that econ boom was permanent led to defaults on loans and bank failures

Question 6

overproduction of consumer goods

Answer 6

volume of goods that workers with stagnant wages could not continue to purchase

Question 7

government policies

Answer 7

gov didn’t control or regulate business, Federal Reserve tried to preserve gold standard

Question 8

effects

Answer 8

GNP dropped by over 50 percent

ended Republican domination of government

Question 9

Home Owners Loan Corporation

Answer 9

provided refinancing of small homes to prevent foreclosures

Question 10

Civilian Conservation Corps

Answer 10

employed young men on projects on federal lands and paid their families small monthly sums

Question 11

Securities and Exchange Commission

Answer 11

regulate stock market and place strict limits on speculative practices that hd led to Wall Street crash

Question 12

Social Security Act

Answer 12

automatic collection of payments from employees and employers throughout people’s working careers
fund made monthly payments to retired people over age of 65