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Q.

What became a factor in causing the Great Depression?


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An Intiative by Sri Chaitanya

a

Overproduction

b

First World War

c

Overseas trading

d

Gold rates 

answer is A.

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Detailed Solution

Overproduction became a factor in causing the Great Depression. Overproduction in agriculture was one of several causes that contributed to the depression. The situation was worsened by declining crop prices. Farmers strove to increase production and bring more food to market to retain their overall income when prices fell and agricultural income decreased. As a result, the market's oversupply intensified, and prices fell even lower. The lack of consumers caused farm food to decay.
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What became a factor in causing the Great Depression?