Question

trace the causes that led to financial collapse in industries and high unemployment. arrange the events in order, starting with the first event on top.
(1 point)
consumers make large purchases on credit.
bank runs contribute to the failure of financial institutions.
industry declines as unemployment climbs past 20 percent.
the stock market experiences a significant crash.

Explanation:

To determine the order, we analyze the causal chain:

1. Consumers make large purchases on credit: This leads to overextension of credit and potential debt issues, creating instability.
2. The stock market experiences a significant crash: Often preceded by credit-driven overspeculation, the crash triggers financial panic.
3. Bank runs contribute to the failure of financial institutions: The stock market crash causes people to lose confidence in banks, leading to runs and bank failures.
4. Industry declines as unemployment climbs past 20 percent: Bank failures and financial collapse reduce business funding, leading to layoffs and industrial decline.

Answer:

1. Consumers make large purchases on credit.
2. The stock market experiences a significant crash.
3. Bank runs contribute to the failure of financial institutions.
4. Industry declines as unemployment climbs past 20 percent.