Question

.Which economic condition of the 1920s was amajor cause of the Great Depression?(1) Farm prices rose dramatically.(2) Industry overproduced consumer goods.(3) Banks were reluctant to lend money.(4) Demand increased faster than supply

Answer 1

Answer:

(2) Industry overproduced consumer goods.

Answer 2

Answer: All of the above and more caused the Great Depression

Explanation:

The stock market crash of 1929 occurred as a chain of events that plunged the United States into its longest, deepest economic crisis of its history. the stock market crash wasn’t the only cause of the Great Depression.

Overproduction and the excessive use of credit also accounted for it so also, widening income gap between the rich and the poor.

7 major cause were:

1. Irrational optimism and overconfidence in the 1920s.

2. 1929 Stock Market Crash.

3. Bank Closures and weaknesses in the banking system.

4. Overproduction of consumer goods.

5. Fall in demand and the purchase of consumer goods.

6. Bankruptcies and High levels of debt.

7. Lack of credit.