Question

Which of the following was a cause of the Great Depression?

a.
too much debt incurred by credit buying
c.
war destroyed the economy
b.
raising of the taxes
d.
people were afraid to spend money and the economy stalled

Answer 1

The U.S. economy actually flourished after World War 1, the reason for the crash was not the war, it was the banks and stock market failing. I'd say d. people were afraid to spend money and the economy stalled.

Answer 2

The correct answer is A) too much debt incurred by credit buying.

Too much debt incurred by credit buying was a cause of the Great Depression.

The United States stock market crash of October 1929 started the period called the Great Depression in the United States. After the stock market crash, American citizens lost their jobs, many companies had to close, and banks went into bankruptcy. This period was the worst economic moment for people in the United States. Citizens blamed President Hebert Hoover because he practically did nothing to help them to overcome the difficult situation.