GD Part 1

Great Depression Part 1 ReviewDirections: Under each complete the phrase, answer the question, fill in the blank, or define the definition.
How did Herbert Hoover win the election of 1828? He had WWI accomplishments and optimism over the economy.
What things were going on in the 20’s that lead to the Great Depression? Mostly everything was bought on credit (80% of radios and 60% of cars). People also poured money they did not have into stock speculation.
What was Black Tuesday? How did it happen? Americans lost billions of dollars with many who bought on margin and lost everything they had.
What effects did Black Tuesday have on the US?Black Tuesday started a chain of reactions leading to the collapse of the US economy. People became scared for the security of their money in banks which lead to a rush of withdraws. The banks had limited supply of money because the US Treasury cut money supply in effort to limit loans so there was not enough money to cover withdraws leading to collapse of banks.How did the Depression spread globally?International Economy had been funded largely by US loans but with collapse of bank in US loans were curtailed leading to business collapse and unemployment in Europe.