The Causes of the Great Depression

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Why did workers in old industries like coal not share in the prosperity of the 1920s?

Lack of government support

Decrease in demand for coal because of oil (correct)

Due to competition from other industries

High taxes on coal production

What was a significant weakness in the US economy during the 1920s?

Tax policies favoring the working class

Unequal distribution of wealth (correct)

More demand for agricultural products

Overproduction of consumer goods

What was one of the problems faced by farmers during the 1920s boom?

Government subsidies encouraging surplus production

Ease of selling surplus abroad

Increased demand for agricultural products

Overproduction leading to falling prices (correct)

What was the impact of retaliatory tariff on farmers during the 1920s?

Made it difficult to sell any surplus abroad Signup and view all the answers

What contributed to the increasing amount of debt in America during the 1920s?

Purchase of consumer goods on credit Signup and view all the answers

Why did many Americans, such as farmers and agricultural workers, not prosper during the boom?

Overproduction and falling prices Signup and view all the answers

How did the decline in demand for consumer goods affect the US economy in the 1920s?

Caused financial strain on businesses producing consumer goods Signup and view all the answers

What percentage of American homes had electricity by 1927?

63% Signup and view all the answers

What was a major consequence of overproduction by American industries and businesses during the 1920s?

Decline in demand for consumer goods Signup and view all the answers

What was the impact of the laissez-faire policy on the economy?

It meant there was no regulation and insufficient safeguards in the economy. Signup and view all the answers

What was the impact of the stock market crash on shareholders and speculators?

They lost billions of dollars. Signup and view all the answers

How did foreign governments respond to US tariffs on their goods?

They imposed retaliatory tariffs on US goods in response. Signup and view all the answers

What contributed to the decrease in business profits during the 1920s?

Rise of speculation and unrealistic share prices. Signup and view all the answers

What was the term used for the day when nearly 13 million shares were sold on the Wall Street stock exchange?

'Black Thursday' Signup and view all the answers

What was a major limitation on exporting surplus goods abroad for US businesses?

Foreign governments imposing tariffs on US goods. Signup and view all the answers

How did banks become involved in speculation on the stock market?

By using public savings to invest in shares. Signup and view all the answers

What was a significant effect of the Great Depression on industrial production and prices?

A steep decline in industrial production and prices Signup and view all the answers

In the United States, during the Great Depression, how much did industrial production fall between 1929 and 1933?

Approximately 47% Signup and view all the answers

What was a major factor contributing to the Great Depression according to many scholars?

The stock market crash of 1929 Signup and view all the answers

What was the impact of the Great Depression on unemployment in the United States?

Unemployment reached more than 20% Signup and view all the answers

What was a major consequence of the stock market crash in October 1929?

Banking panics Signup and view all the answers

What action did the Parlement take in response to Brienne's attempt to enforce the proposal with a 'lit de justice'?

They demanded an Estates General. Signup and view all the answers

What was the significance of the Paris residence, Palais Royal, during this period?

It became the center of revolutionary activity. Signup and view all the answers

What resulted from Louis' attempts to force through reforms with a Royal Session?

Obstruction by the Duc d’Orleans. Signup and view all the answers

What was the outcome of Paris Parlement's May 1788 'Issued' statement?

The King didn’t have the authority to make changes; only an Estates General could. Signup and view all the answers

What did the Royal Court plan to do to end the power of the Paris Parlement?

Replace it with a new plenary court of nobles appointed by the King. Signup and view all the answers

What led to 3 months of political violence known as the Revolt of the Nobles?

Arrests and drawing up of the May Edicts. Signup and view all the answers

What did Necker's recall symbolize during this period?

The resolution of the impasse and restoration of confidence. Signup and view all the answers

What did the Assembly of Notables decide on regarding the method of debate for the estates?

Debate should be conducted separately by order. Signup and view all the answers

What led to widespread riots and civil unrest during this period?

'Don gratuit' offered by the Church. Signup and view all the answers

What resulted in Louis being forced to submit to agreeing to an Estates General for 1789?

'Bankruptcy' declared in August 1788. Signup and view all the answers

What was the response of the clergy to the proposed reforms by Calonne?

They opposed the plans to tax the church. Signup and view all the answers

Why did the Notables feel offended by Calonne's actions?

They felt he was disregarding the ideas of the enlightenment. Signup and view all the answers

What did Calonne propose to do with the corvee royal?

Convert it into a tax. Signup and view all the answers

What did Calonne propose in relation to the Estates general?

Support for convening an Estates general. Signup and view all the answers

Why was Calonne dismissed by Louis in April 1787?

Under pressure from Marie Antoinette who favored Brienne. Signup and view all the answers

What did Brienne attempt to register despite opposition from the Parlements?

A land tax. Signup and view all the answers

What was Calonne's response when the Assembly of Notables was not convinced of the financial situation's desperation?

He criticized the Notables for allowing 'self-interest' to stand in the way of reform. Signup and view all the answers

What did Calonne propose regarding protestants?

Greater toleration of protestants. Signup and view all the answers

Why did many Notables dislike Calonne's manner of implementing reforms?

They saw it as an example of 'ministerial despotism'. Signup and view all the answers

What was the response of Marie Antoinette towards Calonne's dismissal?

She favored Brienne as a replacement for Calonne. Signup and view all the answers