Answer:
The Great Depression of 1929 devastated the U.S. economy. A third of all banks failed. 1 Unemployment rose to 25%, and homelessness increased. 2 Housing prices plummeted 67%, international trade collapsed by 65%, and deflation soared above 10%.
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It would be the term "militarism" that refers to a nation's tendency to expand its armed forces and acquire new and better weapons, since in this case the nation in question is expanding its military capabilities.
