alleryStart learning →What is named as the core of the problem behind the depression of the 1930s?
AOutput fell far behind what people needed
BOutput ran past what people could buy
CToo many banks lent to foreign nations
DToo few new factories were being built
Answer & Solution
Correct answer: B. Output ran past what people could buy
1. 1. The core is described as a disparity between productive power and the ability to consume.
2. 2. New techniques during and after the war raised output beyond the purchasing capacity of farmers and wage-earners.
3. 3. Savings that could not find sound investment were then drawn into speculation in stocks and real estate.
4. 4. Falling output and a shortage of factories are the reverse of the overproduction described.
_Source: An Outline of American History (U.S. Information Agency, 1990, public domain), section ROOSEVELT BATTLES DEPRESSION_
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