Which economic problem affected many American farmers during the 1920s before the Great Depression?
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Correct answer: Falling crop prices and heavy debt
Farmers faced falling crop prices after wartime demand declined. Many had borrowed money to buy land or equipment and struggled with debt throughout the 1920s.
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More Causes of the Great Depression questions
- How did unequal distribution of income contribute to the Great Depression?
- What is overproduction in the context of the Great Depression's causes?
- How did consumer credit in the 1920s contribute to economic weakness?
- What happened when many banks failed during the early Great Depression?
- Why did bank runs worsen the financial crisis?
- Which international factor helped spread the Great Depression globally?