Which of the following factors contributed to a breakdown of the economy during the Great Depression?
A) a sharp increase in tax rates in 1932
B) a sharp decline in the money supply during 1929 through 1933
C) a sharp increase in tariff rates during 1930
D) all of the above

Question

Quizplus · Accepted Answer

All of the above factors contributed to the breakdown of the economy during the Great Depression. The sharp increase in tax rates in 1932 reduced consumer spending, the sharp decline in the money supply during 1929 through 1933 made it difficult for businesses to obtain loans and caused deflation, and the sharp increase in tariff rates during 1930 slowed international trade and economic growth.

Which of the Following Factors Contributed to a Breakdown of the Economy