Question

which factors led to the great depression? choose all the correct answers.

the government raised interest rates at a time when many people had purchased items on credit.

safety net programs led to an increase in government spending, creating a high government deficit.

businesses were profiting, but workers wages barely increased, causing an increase in the wealth gap.

an increase in production forced businesses to pay some of their employees higher wages.

people were afraid of the stock market crash, so they stopped buying stocks and sold them at alarming rates.

Explanation:

• The Federal Reserve raised interest rates in the late 1920s, making it harder for people with credit debt to pay, worsening economic strain.
• Safety net programs were created after the Great Depression (like New Deal programs), so they could not have caused it.
• Stagnant worker wages while businesses profited meant most people could not afford the goods being produced, leading to overproduction and economic imbalance.
• Higher wages for workers would have increased consumer spending, which does not contribute to an economic collapse.
• Panic selling of stocks after the initial crash accelerated the market collapse, which was a key trigger of the Great Depression.

Answer:

• The government raised interest rates at a time when many people had purchased items on credit.
• Businesses were profiting, but workers' wages barely increased, causing an increase in the wealth gap.
• People were afraid of the stock market crash, so they stopped buying stocks and sold them at alarming rates.