Question

People were in debt. Was this the cause of the Great depression or an effect of the Great depression? Which one answer is correct

Answer 1

Both answers are correct. The Great Depression was a complex economic crisis that involved a multitude of factors, one of which was high levels of debt among both individuals and businesses. This debt burden contributed to the economic downturn and also worsened as a result of the depression. So, in essence, debt was both a cause and an effect of the Great Depression.