Question

- Identifying Cause and Effect Use the notes that you completed

Answer 1

Answer: Hyper-production, a huge financial disparity, will lead America into the worst financial crisis in the history of 1929.

Explanation:

• The causes of the great economic depression are the expansion of the apparent capital and the disparity between the book value and the exchange rate of the shares as a result of malversations in the stock and stock markets. There are some indications that major economic depression is also caused by commodity overproduction. The uneven distribution of wealth between rich and poor was enormously significant, which is considered an additional cause of the great economic depression.

• The consequences of this economic situation in the country have led to enormous employment. Surpluses of goods in the market caused unnecessary holding of workers because there was no need for production, resulting in mass layoffs. By 1933, about 10,000 banks had failed, and more than one million farmers had lost their farms. This situation has contributed to widespread poverty and the most significant economic crisis in US history.