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What were two DIFFERENT factors that contributed to the start of the Great Depression in America? Please explain how they led to disaster. (5 Points)

User Ucefkh
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Answer:

see below.

Step-by-step explanation:

The first factor that contributed to the start of the Great Depression was the massive increase in tariffs on imported goods, which made it more expensive for people to buy products from other countries. This directly led to a decrease in international trade and a fall in demand for products.

The second factor was that banks were required to keep a certain percentage of their deposits in cash reserves, but they were allowed to loan out the rest at interest. This meant that when people started borrowing from banks more than usual, banks had less money available for loans because they had to keep more cash on hand. So instead of lending out more money as usual, they tried charging higher interest rates for loans—which also contributed to a decrease in demand for new loans.

User Matvey Andreyev
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