The Great Depression

Question 1

Causes of the Great Depression

Answer 1

1. Wealth Inequality
2. Market Speculation
3. Buying on Margin
4. Excessive Use of Credit
5. Overproduction
6. Weak Farm Economy
7. Gov Policies

Question 2

Quantitative Data on Effects of the Great Depression

Answer 2

1. GDP drop from $104-$56 Billion
2. 50% decline in national income
3. Money supply contracted by 30%
4. 25% unemployment by 1933

Question 3

Hoover’s Response

Answer 3

1. Hawley-Smoot Tariff
2. Debt Moratorium
3. Federal Farm Board
4. RFC

Question 4

Hawley-Smoot Tariff

Answer 4

1.Tax increase from 31%-49% on foreign imports.
2. Led to even worse depression due to tariffs being placed on U.S. goods in response.
3. 1930

Question 5

Debt Moratorium

Answer 5

(1931) Suspension on payment of international debts from WW1.

Question 6

Federal Farm Board

Answer 6

The government board will purchase excess grain and cotton to stabilize food prices for farmers.

Question 7

RFC

Answer 7

1. Reconstruction Finance Corporation (1932)
2. Emergency loans to large companies (Banks, railroads, and insurance companies) in hopes that money would “Trickle down” to smaller businesses.