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How did agricultural recession contribute to the Wall St. Crash?

User Kousalya
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Final answer:

The agricultural recession contributed to the Wall Street Crash by causing a decline in the agricultural sector, the failure of rural banks, reduced consumer spending, and job cuts in factories.

Step-by-step explanation:

The agricultural recession in the 1920s played a significant role in contributing to the Wall Street Crash in 1929, which then led to the Great Depression. The overproduction of agricultural goods, combined with the falling prices, resulted in farmers not being able to pay their debts. As a consequence, many rural banks failed.

Additionally, the collapse of the agricultural sector meant that farmers could not afford to purchase manufactured goods, leading to reduced demand and job cuts in factories. This decline in consumer spending, along with the failure of rural banks, contributed to the overall economic bust in the country.

Overall, the agricultural recession caused a ripple effect across the economy, affecting not only farmers but also the banking system and industrial sectors. The combination of these factors ultimately led to the collapse of the stock market and the onset of the Great Depression.

User Lesleh
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