Causes of the Great Depression

Question 1

Overproduction

Answer 1

Companies made too many goods (Large Appliances)
People already had so they don’t need more
Sale went down and so did stock

Question 2

Stock Market

Answer 2

“Spark that lit the flame”
Buying on the margin
Borrowing money from the bank and then spending it on the stock market
When the stock market crashed everyone lost their money
Bank doesn’t have enough money to pay people back

Question 3

Wheat prices falling

Answer 3

After ww1 everyone had a ton of wheat
Supply is high demand is low prices is low
Multiplier effect
Initial decrease leads to greater decrease

Question 4

Primary resource dependence

Answer 4

Canada’s HEAVY reliance on money from selling their resources
With no one having money to buy them
Canada loses money from selling

Question 5

Economic nationalism

Answer 5

World governments implemented tariffs to try to stimulate internal markets
Closed Canada’s connections with other countries buying their resources
Not enough people had money to resources to get out of depression

Question 6

International debt

Answer 6

Russia and Germany economics faltered - US lost money
US gained money from reparations
US banks call foreign loans