Responses
a decline in the shipping industry and a reliance on German reparations
a decline in the shipping industry and a reliance on German reparations
the harsh terms of the Treaty of Versailles and the credit system
the harsh terms of the Treaty of Versailles and the credit system
a dramatic drop in American purchases of luxury items and overproduction
a dramatic drop in American purchases of luxury items and overproduction
an increase in demand for luxury goods and underconsumption
1 answer
The response that best explains why the Great Depression spread to Britain is:
a dramatic drop in American purchases of luxury items and overproduction.
This option highlights the interconnectedness of the global economy at the time, particularly how a decline in consumer spending in the U.S. affected other economies, including Britain's. Overproduction also contributed to economic slowdown as markets became saturated, leading to factory closures and unemployment.
