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30 votes
30 votes
How did unemployment cause the economy to get even worse during the Great Depression?

A. people had more time to spend on the farms and not enough time to travel to cities to purchase necessary Goods.
B. people using their savings to buy goods and services they needed to survive
C. people took loans out of their neighborhood Banks at very high interest rates and use this money to buy items they needed.
D. people had no money to buy Goods which led to more factories and businesses going out of business and unemploymet.

User Monie Corleone
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2 Answers

9 votes
9 votes

Answer:

D

Step-by-step explanation:

People were using their savings to buy goods they needed, but this could not be the correct answer because that would be a positive of money going into the economy.

It could not be banks giving out loans with high interest rates, because everyone was taking their money out of the banks, causing many banks to close.

Farming would add to economy by being able to sell produce at cheap price.

D would be the best answer because many were unemployed, they had no money to buy goods and put their money back into the economy, causing a decrease in need of workers and factories! Shows cause and effect

User Cheesysam
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3.1k points
12 votes
12 votes

Answer:

I think the answer is D. Hope this is helpfull

Step-by-step explanation:

While international trade dropped to about two-thirds, personal income and inflation hit hard. With heavy industries such as construction coming to a grinding halt and farming hit by deflated crop prices, unemployment reached an all-time high. Unemployment during the Great Depression worsened with the non-availability of alternate job sources and a total dependency on primary sector industries, which were also hit by associated prices. People turned to farming and mining as sources of livelihood, alongside the Wall Street crash. The Great Depression did end at different times, across the globe, but the unemployment ratio skyrocketed into figures that the world would not forget in a hurry for generations to come.

User Abhishek
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3.2k points