What were the domestic and foreign causes of the Great Depression?



What was a domestic cause of the Great Depression?

It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.

What were the 4 causes of the Great Depression?

While the October 1929 stock market crash triggered the Great Depression, multiple factors turned it into a decade-long economic catastrophe. Overproduction, executive inaction, ill-timed tariffs, and an inexperienced Federal Reserve all contributed to the Great Depression.

How did international trade Cause the Great Depression?





The Great Depression and international trade are deeply linked, with the decline in the stock markets affecting consumption and production in various countries. This slowed international trade, which in turn exacerbated the depression.

What were the major causes of the Great Depression quizlet?

Terms in this set (10)

  • Buying on Credit.
  • Underconsumption/ Overproduction.
  • Unequal Distribution of Wealth.
  • Margin Buying.
  • Stock Market Crash.


What caused the Great Depression quizlet?

The Great Depression was triggered by the stock market crash of 1929, but many other causes contributed to what became the worst economic crisis in U.S. history. The stock market crash cost investors millions of dollars and contributed to bank failures and industry bankruptcies.

What were the 3 effects of the Great Depression?





1 Unemployment rose to 25%, and homelessness increased. 2 Housing prices plummeted, international trade collapsed, and deflation soared. 3 It took 25 years for the stock market to recover.

What caused the great crash of 1929 quizlet?

(1929)The steep fall in the prices of stocks due to widespread financial panic. It was caused by stock brokers who called in the loans they had made to stock investors. This caused stock prices to fall, and many people lost their entire life savings as many financial institutions went bankrupt.

What caused the Great Depression in Europe?

The stock market crash of October 1929 led directly to the Great Depression in Europe. When stocks plummeted on the New York Stock Exchange, the world noticed immediately.

What were the 7 causes of the Great Depression?

Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.

Which of the following best explains the main cause of the Great Depression of the 1930s?

Which of the following best explains the main cause of the Great Depression of the 1930s? Episodes of credit and market instability undermined the financial system.



What was the number one cause of the Great Depression?

The stock market crash of 1929.



Once prices began their inevitable decline in October 1929, millions of overextended shareholders fell into a panic and rushed to liquidate their holdings, exacerbating the decline and engendering further panic. Between September and November, stock prices fell 33 percent.

What are three effects of the Great Depression?

1 Unemployment rose to 25%, and homelessness increased. 2 Housing prices plummeted, international trade collapsed, and deflation soared. 3 It took 25 years for the stock market to recover.

How did consumer spending Cause the Great Depression?

Consumer spending plummeted, factories slowed down production, and companies fired workers. The wages of those still employed were cut, making it hard for people to support their families. American consumers lost their homes to foreclosure and lost (or sold) many of their possessions.

Did the gold standard Cause the Great Depression?

Bank failures led ordinary citizens to hoard gold.



As a result, demand for U.S. exports slowed. A slowing economy combined with the stock market crash of 1929 and a subsequent wave of bank failures in 1930 and 1931 led to crippling levels of deflation.

Which of the following best explains the main cause of the Great Depression of the 1930s?

Which of the following best explains the main cause of the Great Depression of the 1930s? Episodes of credit and market instability undermined the financial system.



What caused the Great Depression in Europe?

The stock market crash of October 1929 led directly to the Great Depression in Europe. When stocks plummeted on the New York Stock Exchange, the world noticed immediately.

What was a weakness in the economy and one of the causes of the Great Depression?

Which was a weakness in the economy and one of the causes of the Great Depression? Risky banking practices. Which group experienced falling incomes, a credit crisis, and a poor standard of living in the years before the Great Depression began?