15 Questions
What was a major factor contributing to the Wall Street Crash of 1929?
Speculative investment in the stock market
What was the impact of the Wall Street Crash on brokerages?
They called in immense loans and faced difficulties in recovering them
How did the stock market respond to the warning signs of economic weakening in 1929?
It continued to grow despite the warning signs
What characterized much of the investment in the stock market leading up to the crash?
It was speculative and risky
What was the response of investors to economist Roger Babson's warnings in September?
They began to sell their stocks
How did the Wall Street Crash impact the money supply and demand?
They plummeted due to decreased profits
What was a consequence of the stock market collapse on bank runs?
Depositors sought to withdraw their savings, leading to bank runs
Which act contributed to a peak unemployment rate of 23% in subsequent years?
The Tariff Act of 1930
What was the primary focus of the New Deal?
Relief, recovery, and reform
Which program aimed to employ millions in building public utilities and infrastructure?
The Works Progress Administration
What was a notable New Deal initiative for relief?
Aid for farmers
Which was a key New Deal initiative for recovery efforts?
The Fair Labor Standards Act
What was the aim of the New Deal's focus on reforming the financial system?
To prevent another economic crash
What is debated among historians and economists regarding the New Deal's impact on the Great Depression?
Whether it effectively ended the Great Depression
What effect did the New Deal have on the US's GDP and manufacturing over the course of the 1930s?
Returned to pre-Depression levels
Study Notes
The New Deal and Its Impact on the Great Depression
- The Tariff Act of 1930 led to a decrease in international trade and a peak unemployment rate of 23% in subsequent years.
- The Great Depression was a period of high unemployment and economic crisis in the 1930s.
- President Herbert Hoover's reluctance to provide direct relief during the crisis led to public discontent.
- Franklin D. Roosevelt's New Deal was a response to the economic crisis and included new government policies and reforms.
- The New Deal aimed to provide relief, recovery, and reform through various government programs and initiatives.
- Relief programs under the New Deal included the creation of projects and aid for those who had lost their savings and jobs.
- The Works Progress Administration and the Public Works Administration were created to employ millions in building public utilities and infrastructure.
- Social Security, aid for farmers, and programs for writers, actors, and artists were notable New Deal initiatives for relief.
- The National Recovery Administration and the Fair Labor Standards Act were key in the New Deal's recovery efforts, aiming to restore the economy to healthy levels.
- The New Deal also focused on reforming the financial system to prevent another economic crash, including the creation of the US Securities and Exchange Commission.
- There is debate among historians and economists over whether the New Deal effectively ended the Great Depression, with some arguing it prolonged the economic downturn.
- Overall, the New Deal had a broadly positive effect, with the US's GDP and manufacturing returning to pre-Depression levels over the course of the 1930s.
Test your knowledge of the New Deal and its impact on the Great Depression with this informative quiz. Explore the key policies and programs implemented by Franklin D. Roosevelt's administration to address the economic crisis, and learn about the debate surrounding its effectiveness in ending the Great Depression.
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