C. • a dramatic drop in American purchases of luxury items and overproduction
During the Great Depression, there was a decrease in global demand for goods, which led to overproduction and a decline in exports. The United States, one of Britain's major trading partners, experienced a significant drop in purchases of luxury items, which impacted the British economy. This, along with other factors, contributed to the spread of the Great Depression to Britain.
Which of the following best explains why the Great Depression spread to Britain? (1 point)
A. • an increase in demand for luxury goods and underconsumption
B. • a decline in the shipping industry and a reliance on German reparations
C. • a dramatic drop in American purchases of luxury items and overproduction
D. • the harsh terms of the Treaty of Versailles and the credit system
1 answer