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What brings the U.S out of the Great Depression?
A. The government prints more money to replace what was lost during the stock market crash
B. WWII and growth of weapon industries put the U.S back to full employment
C. The government provides all Americans with stimulus payments
D. The U.S borrows money from other countries to stimulate business


Sagot :

Answer:

B. WWII and growth of weapon industries put the U.S back to full employment

Explanation:

Context: The Great Depression started after the crash of Wall Street- a crash that was due to large amounts of speculation, overproduction, poor monetary policy, debt on the world stage, and unhelpful tariffs during the roaring 20s. This depression was ultimately the worst in American history- leaving staggering unemployment figures and effects that would be felt for over 10 years.

When the Great Depression first began, President Hoover was in office, and unfortunately, he did little domestically, not really doing much to help the state of the economy.

In the 1932 Election, President Roosevelt (FDR) came into office, and he would implement a series of policies under the New Deal based around 3 R's- Relief, Recovery, and Reform.

Under the New Deal, FDR focused on domestic policy- which may have included option C, yet this new deal program, although helping, was still not enough to pull the economy out of depression.

Option A may have further damaged the economy, as high inflation rates would have only been elevated by printing money, further decreasing the real value of money.

Option D would also be incorrect as this depression was worldwide- especially in Europe, as nations still had crippling debt from WW1- meaning most nations wouldn't have the means to loan money to other powers.

Ultimately, WW2's start in 1939 would be what brings the US out of the depression by mobilizing thousands for the army, spurring the economy in weapon development, and increasing economic transactions with higher foreign demand and exports. The huge amount of government spending required during the war further injected money into the economy (a form of fiscal policy) hence taking the US out of the Great Depression.