7.4 The Economy in the Interwar Period

• One key cause of economic instability was the high reparations demanded from Germany
• The Interwar Period was marked by economic and political stability in many parts of the world.

  False
• The stock market crash of 1929 originated in Europe.

  False
• High reparations from Germany helped stabilize the European economy after World War I.

  False
• The Great Depression was a severe global economic crisis that lasted from 1929 to the late 1930s
• The agricultural crisis during the Great Depression was exacerbated by the Dust Bowl
• Fiscal policies like deficit spending were key responses to the Great Depression.


  True
• The complex web of debts among Allied nations complicated economic recovery efforts across Europe.


  True
• What was the primary cause of the Great Depression?

  Stock market crash of 1929
• High tariffs during the Great Depression restricted international trade
• The agricultural crisis known as the Dust Bowl destroyed crops and farms in the Midwest
• The imposition of protectionist policies such as high tariffs aimed to protect domestic industries
• What is a trade embargo, and what is its consequence?

  Complete ban on trade, severe economic disruption
• Monetary policies during the Great Depression aimed to encourage borrowing, investment, and financial stability
• The Interwar Period refers to the time between the end of World War I in 1918 and the start of World War II in 1939
• Debts among Allied nations simplified economic recovery and trade.

  False
• Overproduction and decreased demand led to factory closures and job losses
• Order the following causes of economic instability by their initial impact:

  1️⃣ High Reparations from Germany

  2️⃣ Debts among Allied nations

  3️⃣ Overproduction and decreased demand

  4️⃣ Stock market crash of 1929
• Overproduction and decreased demand led to factory closures and job losses
• Match the causes of the Great Depression with their explanations:

  Stock market crash of 1929 ↔️ A sudden decline in stock prices.

  Bank failures ↔️ Banks closed due to lack of funds.

  Overproduction and decreased demand ↔️ High production with low consumer spending.

  High tariffs ↔️ Restricted international trade.
• Government economic responses to the Great Depression included fiscal and monetary policies.

  True
• What was one key cause of economic instability during the interwar period?

  High reparations from Germany
• What led to factory closures and job losses during the interwar period?

  Overproduction and decreased demand
• Bank failures during the Great Depression led to loss of savings and economic instability.


  True
• High unemployment during the Great Depression led to widespread poverty and social unrest.


  True
• What was one fiscal policy implemented to combat the Great Depression?

  Public works projects
• What was the consequence of high tariffs during the interwar period?

  Reduced global trade
• What was one key effect of the Great Depression on international trade?

  Reduced global trade
• Economic nationalism during the Great Depression led to increased focus on domestic production and trade.


  True
• Fiscal policies like the New Deal in the US fully restored economic prosperity during the Great Depression.

  False
• The Interwar Period was marked by economic and political instability
• The stock market crash of 1929 triggered a global financial crisis.

  True
• High unemployment was one of the effects of the Great Depression.


  True
• Match the government economic responses with their descriptions:

  Fiscal Policies ↔️ Involve government spending and taxation.

  Monetary Policies ↔️ Manage money supply and interest rates.
• The Allied powers required Germany to pay substantial reparations after World War I, which severely burdened the German economy
• The stock market crash of 1929 triggered a global financial crisis
• How did overproduction and decreased demand affect the economy during the Great Depression?

  Created surpluses and job losses
• What agricultural crisis exacerbated the Great Depression in the Midwest?

  The Dust Bowl
• Monetary policies during the Great Depression involved adjusting interest rates to encourage borrowing and investment.


  True
• The stock market crash of 1929 and the Great Depression exacerbated debt crises and reduced international investments.

  True