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Questions and Answers
What was a direct cause of the Great Depression?
What was a direct cause of the Great Depression?
What impact did American farmers face in the 1920s?
What impact did American farmers face in the 1920s?
What was the economic climate of the United States in the 1920s?
What was the economic climate of the United States in the 1920s?
What was 'Black Tuesday'?
What was 'Black Tuesday'?
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What is meant by the phrase 'installment buying'?
What is meant by the phrase 'installment buying'?
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What is the main reason why the stock market crashed?
What is the main reason why the stock market crashed?
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How did the Great Depression impact banks?
How did the Great Depression impact banks?
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Which of these presidents is NOT associated with the Great Depression?
Which of these presidents is NOT associated with the Great Depression?
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Study Notes
The 1920s Prosperity
- The 1920s were a period of economic prosperity in the United States.
- Warren G. Harding and Calvin Coolidge were presidents during the 1920s, both Republicans.
- Americans' optimism led to the election of another Republican president, Herbert Hoover, in 1928.
- However, an economic crisis was just seven months away.
Problems Facing American Farmers
- American farmers experienced hard times throughout the 1920s.
- They took out large loans for farm equipment.
- Post-war, they could no longer sell their high crop yields, leading to bankruptcy.
- This caused a rural depression, impacting millions of farmers in the 1920s.
Easy Credit and Consumer Debt
- Installment buying made the American economy vulnerable.
- Credit allowed Americans to purchase consumer goods, but often using borrowed money.
- This led to significant debt among American citizens.
- Eventually, the American economy crashed in 1929.
- The stock market crash began the Great Depression.
The Great Depression Begins
- The stock market crash marked the start of the Great Depression.
- One of the first institutions to collapse was the nation's banks.
- When stock prices decreased, investors quickly withdrew their money from banks.
- People lost their jobs and businesses cut back on spending.
- Unemployment rates rose dramatically.
- By 1933, nearly 30% of American workers were unemployed.
- The crash was noted by a particular day called Black Tuesday.
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Description
Explore the contrasting themes of prosperity and struggle in the 1920s United States. This quiz covers the economic boom, the challenges faced by farmers, and the rise of consumer credit leading up to the Great Depression. Test your knowledge on key political figures and the economic factors of this vibrant decade.
