Choose two of the above numbered causes of the Great Depression. Explain how those two factors led to the Great Depression, and how they affected the life of the average American. Use at least 3 to 5 sentences with details to support your answer.

Answer 1

1. Stock Market Crash: The stock market crash of 1929 was a major factor that led to the Great Depression. The crash caused panic among investors and led to widespread selling of stocks, causing a sharp decline in stock prices. This resulted in a loss of wealth for many Americans who had invested in the stock market, leading to a decrease in consumer spending and investment. The average American saw their savings and investments wiped out, causing financial hardship and a decrease in their standard of living.

2. Bank Failures: The widespread bank failures during the Great Depression further exacerbated the economic crisis. As a result of the stock market crash and the subsequent decrease in economic activity, many banks were left holding a large number of bad loans and investments. This led to a wave of bank runs as people rushed to withdraw their money, causing many banks to close their doors. The average American lost their savings as a result of these bank failures, leading to a loss of trust in the banking system and a decrease in consumer spending. This further deepened the economic downturn and prolonged the Great Depression.

Answer 2

use the ame meaning but make it super short

Answer 3

1. Stock Market Crash: The sudden drop in stock prices caused panic and led to a loss of wealth for many Americans, decreasing consumer spending and investment, ultimately lowering the standard of living.

2. Bank Failures: Widespread bank closures due to bad loans and bank runs left many Americans without their savings, eroding trust in the banking system and further reducing consumer spending, prolonging the economic crisis.