Great Depression

Question 1

What caused the Great Depression?

Answer 1

Commitment to the gold standard.
Fall in money supply.
Led to economy growth.

Question 2

What was the first approach to enable the Wall Street crash to turn into the Great Depression.

Answer 2

It introduced policies which increased the price of imports and caused the collapse of world trade.

Question 3

What is the second point that enabled the Wall Street Crash

Answer 3

Engage in a policy of contractional fiscal policy because of a belief in balanced budgets. Increasing interest rates to protect itself from negative consequences of belonging to the gold standard.

Question 4

What were the three remedies to renewing the US economy form the Great Depression

Answer 4

1. New deal
2. Expansionary Monetary Policy
3. Removal of import restrictions.