World History Semester B Exam

Question

26 of 4026 of 40 Items

Question
Which of the following best explains why the Great Depression spread to Britain?(1 point)
Responses

an increase in demand for luxury goods and underconsumption
an increase in demand for luxury goods and underconsumption

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

Answer 1

The best explanation for 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 the impact of the U.S. economy on other countries, including Britain. When American consumers reduced their spending and overproduction occurred, it led to economic challenges not only in the U.S. but also in Britain and other nations reliant on American goods and investment.