History, 10.02.2021 14:00 sbelgirl2000

1. During the 1920s, the Federal Reserve increased the money supply and kept interest rates very low, encouraging consumer spending and the brisk borrowing of money. Business investment and the expansion of businesses grew rapidly during the 1920 to meet the needs of this huge consumer spending. However, during the Crash of 1929, the Federal Reserve reversed its expansionary monetary policy and cut off the money supply by almost 30%, causing banks to not have enough currency on hand when depositors wanted their hard-earned money. After reading the prompt, what can you surmise happened next that contributed to the Great Depression?

Black Tuesday

high unemployment

collapse of banks

2. During the Great Depression, expressions such as Hoovervilles showed President Hoover

was blamed for the suffering of the poor

used the military to aid the unemployed

was seen as a role model

supported relief and public housing for the needy

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1. During the 1920s, the Federal Reserve increased the money supply and kept interest rates very low...

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