QUESTION IMAGE
Question
question 1
5 pts
the practice of buying on margin most directly contributed to
the rise of international trade with europe.
the expansion of farms in the great plains.
the growth of government jobs during the 1930s.
the collapse of banks and personal savings.
question 2
5 pts
why did the hawley - smoot tariff worsen the great depression?
it limited international trade and slowed economic recovery
it increased farm production and created a crop surplus
it reduced taxes for wealthy americans and big businesses
it encouraged more government spending on public projects
- Question 1: Buying on margin means borrowing money to invest. When the stock market crashed (as was the case before the Great Depression), investors couldn't pay back their loans. Banks had lent this money, and when loans weren't repaid, banks collapsed. People had their savings in these banks, so personal savings also suffered.
- Question 2: The Hawley - Smoot Tariff was a law that raised tariffs (taxes on imports). Other countries retaliated by raising their own tariffs. This limited international trade. With less trade, it was harder for the economy to recover as markets for goods (both domestic and foreign) shrank.
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- Question 1: the collapse of banks and personal savings.
- Question 2: It limited international trade and slowed economic recovery.