Causes & Early Effects of the Great Depression

Read Chapter 22-1 and answer the first 3 questions. Then Read Chapter 22-3 (yes, skipping 22-2) and answer the remaining questions. pg 669

1. What happened on "Black Tuesday"?

It was the day when the stock markets crashed.

2. How did the economic trends of the 1920s in industry, agriculture, and with consumers help cause the Great Depression? (Make sure you include significant details about each area in your answer. It should be at least a paragraph)



3. According to your reading, what are the major causes of the Great Depression?

tarrifs and war policies that cut down the foreign market for american goods, a crisis in the farm sector, the availability of easy credit, an unequal distribution of income

4. What was Hoover’s philosophy of government?

Hoover believed that one of the government's Cheif functions was to foster cooperation between compeating groups and interests in the society.

5. What was Hoover’s initial reaction to the stock market crash of 1929?

he encouraged Americans to stay confident about the economy

6. What was the nation’s economic situation in 1930?

depression deepend

7. How did voters in 1930 respond to this situation?

8. What did Hoover do about the economic situation?

he had the leaders of business, banking, and labor find ways to fix the problem without making it worse. He signed into law th Federal Home Loan Bank act, which lowered mortgage rates for homeowners and allowed farmers to refinance their farm loans and avoid foreclosure.

9. How did the economy respond to his efforts?

they made a group called the Bonus Army