What major economic effect resulted from the Great Depression?

What major economic effect resulted from the Great Depression?

• A. Increased international trade
• B. Millions losing their jobs
• C. Lower taxes on goods
• D. Expansion of foreign investments

Answer: (B)

The Great Depression, which began in 1929, had a profound impact on the U.S. economy, with millions of individuals facing unemployment as businesses collapsed and economic conditions deteriorated. As consumer confidence plummeted, banks failed, and industries shuttered, the unemployment rate soared, leaving families struggling to make ends meet. This immense loss of jobs not only affected individual lives but also led to a decline in consumer spending, further exacerbating the economic crisis. The other choices reflect scenarios that either did not occur or were opposite of what happened during this period. International trade decreased dramatically as countries implemented protectionist policies in an attempt to shield their economies, while taxes on goods typically rose instead of falling as governments sought revenue amid declining economic conditions. Additionally, foreign investments sharply declined as investors became more risk-averse during this economic upheaval, further showing the devastating effects of the Great Depression. The loss of jobs stands out as a major consequence of this era, directly impacting millions of Americans and shaping the nation’s economic landscape.

The Great Depression, which began in 1929, had a profound impact on the U.S. economy, with millions of individuals facing unemployment as businesses collapsed and economic conditions deteriorated. As consumer confidence plummeted, banks failed, and industries shuttered, the unemployment rate soared, leaving families struggling to make ends meet. This immense loss of jobs not only affected individual lives but also led to a decline in consumer spending, further exacerbating the economic crisis.

The other choices reflect scenarios that either did not occur or were opposite of what happened during this period. International trade decreased dramatically as countries implemented protectionist policies in an attempt to shield their economies, while taxes on goods typically rose instead of falling as governments sought revenue amid declining economic conditions. Additionally, foreign investments sharply declined as investors became more risk-averse during this economic upheaval, further showing the devastating effects of the Great Depression. The loss of jobs stands out as a major consequence of this era, directly impacting millions of Americans and shaping the nation’s economic landscape.