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Which best explains why farmers in the Great Depression could not repay their loans?
The price of crops was too high.
The price of crops was too low.
The price of topsoil was too high.
The price of farm equipment was too low.
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User Al Sutton
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Final answer:

Farmers in the Great Depression struggled to repay their loans due to low crop prices and a decline in farm equipment prices.


Step-by-step explanation:

During the Great Depression, farmers faced several challenges that made it difficult for them to repay their loans.

One major reason was that the price of crops was too low. As the demand for farm products decreased, so did their value, leading to lower prices. This meant that farmers earned less from their produce, making it harder for them to generate enough income to repay their loans.

Additionally, the Depression also caused a decline in the price of farm equipment. Many farmers had taken out loans to purchase machinery, but with the decrease in demand and prices, they were left with expensive equipment that they couldn't sell for a profit.


Learn more about economic challenges faced by farmers during the Great Depression

User Rsjethani
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