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Social Studies

1 answer:

bixtya [17]3 years ago

3 0

Answer:

the gold standard

Explanation:

The gold standard unquestionably played a role in the spread of the Great Depression from the United States to many other countries because Americans were buying fewer imported goods, but while American exports were relatively cheap the imbalances gave rise to significant foreign gold outflows to the United States, which in turn threatened to devalue all the currencies of the countries whose gold reserves were depleted. They attempted to counteract the trade imbalance by raising interest rates, which reduced the output and prices but increased unemployment in their countries.

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