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KengaRu [80]
3 years ago
12

Drag each cause of the Great Depression to the correct category. Use each cause only once.

History
1 answer:
VMariaS [17]3 years ago
7 0

Answer:

Great depression was the severest downturn of the economy .It lasted for more than 10 years .There was fall in the economy as a whole.There was fall in industrial production,prices,unemployment ,rise in poverty and fall in the performance of banks.

<u>Explanation:</u>

Causes of Great Depression:

  1. <u>Stock market crash of 1929</u>:it was one of the major causes that lead to great depression
  2. <u>Bank failures</u>:9000 banks failed and people lost their savings
  3. <u>Reduction in purchasing</u>:With the crash in the stock market people got scared and their purchasing power reduced a lot.
  4. <u>Reduction in production</u> :Less purchasing power of people had a great impact on production.
  5. <u>American economic policies</u> with Europe:In order to protect American companies ,new policies were introduced a high tax was charged on imports which reduces trade with other countries.
  6. <u>Drought</u>:In 1930 drought occurred in Mississippi.Due to which people were not able to pay the taxes and they had to sell their farms.
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