Name _____________________________________ Analyzing Causes of the Great Depression 24 Points Total Directions: Fill in the blanks and answer the questions using the textbook, classroom lectures, and obviously your brain. Problems on the Farms and with Rural Banks 1. During WWI, farm prices are high, leading to profits by farmers. 6. 7. 2. 3. 5. 4. Crop prices drop in 1920 and 1921. (1) How does “farmers investing in their future” (buying more land and equipment) and “overproduction” fit into the larger national optimistic sentiments of post-WWI and later 1920’s America? ____________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Analyzing Causes of the Great Depression Chapter 11, Page 404 – “Causes of the Great Depression” Directions: Use information from page 404, “Causes of the Great Depression,” to answer these questions, analyzing the causes of the Great Depression. These causes of the Great Depression result from Post-WWI and 1920’s optimism and a poor assessment of future economic conditions. 1. 3. 2. 1 This cause of the Great Depression led to less consumer spending. 4. 5. These causes of the Great Depression lead to a slowdown in the economic system. 6. Analyzing Causes of the Great Depression Chapter 11, Page 404 – “Causes of the Great Depression” Directions: Use information from page 404, “Causes of the Great Depression,” and the rest of Chapter 11, Section One to answer these questions, placing the causes of the Great Depression in chronological order. 1. 2. 6. 5. (2) What is buying on the margin? 3. 4. ________________________________________________________ _________________________________________________________________________________________ (3) What is buying on the installment plan? __________________________________________________ _________________________________________________________________________________________ (4) What is market liquidity? _______________________________________________________________ _________________________________________________________________________________________ (5) What is deflation? _____________________________________________________________________ _________________________________________________________________________________________ (6) How did the Stock Market Crash of 1929 affect the banking industry, and what exactly caused the stock market crash? ____________________________________________________________________________ 2 _________________________________________________________________________________________