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Q.

Choose that given statement is true/false:


The Great Depression was caused in 1929.


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a

True

b

False 

answer is A.

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Detailed Solution

The above statement is true.
The Great Depression was caused in 1929. During the depression, agricultural prices fell, and industrial production came to a halt. These consequences led millions of people to be jobless and homeless. It started in the United States of America with the world market crash in 1929. It created a panic situation among the people. The banking system collapsed as depositors started demanding their money back. The leading cause of this depression was the fall of aggregate demand due to underconsumption and over-investment.
 
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