The recession that began in 1929 turned into the Great Depression primarily because of:
A)the banking crisis.
B)the beginning of World War II.
C)taxes that were too low to finance government programs to end the recession.
D)powerful labor unions that demanded high wages and generous benefits.

Question

Quizplus · Accepted Answer

The banking crisis was the primary reason that the recession turned into the Great Depression. Many banks failed, causing people to lose their savings, and leading to a decrease in the amount of money available for investment and consumption. This, in turn, led to a further decrease in demand for goods and services, exacerbating the economic downturn.

The Recession That Began in 1929 Turned into the Great