Question

One important cause of the Great Depression in the U.S. was that by the end of the 1920's? (1) the government controlled every aspect of the economy. (2) tariffs were so low that foreign products had forced many U.S. Companies out of business. (3) investors were too cautious, and put their money only into government bonds. (4) factories and farmers were able to produce far more that buyers could afford to purchase.

Answer 1

The correct statement is number 4.

During the 1920's factories and farmers were producing more goods than any other time in America up until this point. When the stock market crashed and people lost their life savings, companies and farms continued to generate a huge amount of resources. This occurred even though many people could not afford these goods/services due to the stock market crash and the closing of US banks.