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aniked [119]
3 years ago
7

What were the causes of the great depression, and how effective were the government's responses by 1932?

History
1 answer:
julia-pushkina [17]3 years ago
7 0
The great depression was the worst downturn in the history lasting from 1929-1939. It started in 1929 when the stock market crashed which sent wall street into panic, there are several other factors that caused the great depression:1)- Crash of stock market2)- Failure of many banks.3)- Poor banking policies by Federal Reserve. (Instead of lowering interest rate as economy slumped, they raised the interest rate.4)- Federal government also passed a high protective tariff.5)- unequal distribution of income.At first, government believed that the economy would correct itself,leading to no government action dealing with crisis. By the time government acted the depression was so severe that their efforts were not enough to recover the decline.


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