Question

Why did the great crash produce a ripple effect throughout the nation's economy?

Answer 1

Stocks directly affected only 4 million out of 120 million people. Indirectly: 
-Risky loans hurt banks
-Consumer borrowing
-Bank runs
-Bank failures
-Savings wiped out (Banks failures wiped out peoples saving)
-Cuts in production
-Rise in unemployment
-Further cuts in production