Which international factor helped spread the Great Depression globally?
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Correct answer: Interconnected trade, debts, and banking systems after World War I
The global economy after World War I was tied together through trade, loans, reparations, and banking relationships. When the U.S. economy collapsed, financial trouble spread to other countries.
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More Causes of the Great Depression questions
- How did high tariffs such as the Smoot-Hawley Tariff worsen the Depression?
- Which statement best describes the Federal Reserve's role in the early Depression?
- What is deflation, a major problem during the Great Depression?
- Which industry showed signs of weakness before the stock market crash and was important to the broader economy?
- Why did the stock market crash not by itself fully explain the Great Depression?
- How did falling consumer demand affect businesses during the early Depression?