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Question
what is one reason government intervention proved necessary during the great depression?
businesses wanted more government regulation.
european markets were booming and the united states needed to keep up.
bank failures and credit problems meant spiraling unemployment, home losses, and business failures.
voters demanded intervention.
During the Great Depression, bank failures led to a lack of credit availability. This caused businesses to fail as they couldn't get loans to operate, and people lost their jobs (unemployment). Homeowners also faced losses as they might not be able to get mortgages or keep up with payments. Government intervention was needed to address these economic hardships. Businesses generally did not want more regulation (they often prefer less in normal times). European markets were not booming during the Great Depression (many also suffered). Voters' demand was more of a result of the economic problems (like bank failures etc.) rather than the primary reason for the necessity of intervention.
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Bank failures and credit problems meant spiraling unemployment, home losses, and business failures.