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Analyse any two factors that were responsible for the Great Depression in America during 1929.
Answer:
Explanation
- Overproduction in agriculture was a major issue
- US overseas loans amounted to over $ 1 billion in the first half of 1928.
- The stock market crisis had an impact on bank failure.
- Increase in US import duty.
Answer to be written in Exam
Factors responsible for the great depression in America during 1929 are:
- Post-world War economy of the world was fragile. Overproduction in agriculture was a major issue in the world. It was made worse by falling agricultural prices.
- US overseas loans amounted to over $ 1 billion in the first half of 1928. Countries that heavily rely on US financing were currently facing a serious crisis . The withdrawal of US loans affected much of the rest of the world.
- The stock market crisis had an impact on bank failure , which caused more customers to withdraw their savings. Banks got bankrupt and shut down in Europe
- The US attempted to defend its economy during the Great Depression by raising import duties.
* Write any two points.
