The text authors assert that "the real problem [during the Great Depression] was not tight credit, but the soft demand for goods." Explain how a low level of consumer demand produced a deepening and widening economic depression in America
What will be an ideal response?
Chronic low wages and layoffs produced low consumer demand. In response, producers cut back production (instead of lowering prices), and laid off more workers. Businesses did not borrow money (not intending to expand production), banks went broke, people lost their savings, and demand dropped even further.
You might also like to view...
All of the following factors contributed to a reform impulse in the United States during the 1830s EXCEPT the
A) activist tendencies in Whig political ideology. B) Puritan idea of American mission. C) anxiety over profound economic and social changes. D) belief in human depravity.
The first attempt to collectively organize farmers came in 1867 when ________ founded the Order of the Patrons of Husbandry
Fill in the blank(s) with the appropriate word(s).
Jefferson used the method of __________ to remove Judge John Pickering and to try to remove Judge Samuel Chase from the Supreme Court
A) impeachment B) forced resignation C) raising criminal charges D) imprisonment
What was the name of the battle lead by Charles Martel to expel the Muslims from Frankish lands?
a. Battle of Poitiers b. Battle of Abd-ar-Rahman c. Battle of Cordoba d. Battle of Tours e. Battle of Aachen