Causes of the Great Depression
Title: Causes of the Great Depression
Category: /History
Details: Words: 398 | Pages: 1 (approximately 235 words/page)
Causes of the Great Depression
Category: /History
Details: Words: 398 | Pages: 1 (approximately 235 words/page)
…showed first 75 words of 398 total…
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…showed last 75 words of 398 total…because of people withdrawing their funds from the market.
A working economy relies on a circular flow of money; my spending becomes part of your earnings, and your spending becomes part of my earnings. With the crash of the stock market and the failure of the banks, people became frightened. They pulled out their funds in order to protect their livelihoods. This resulted in a breakdown of the circular flow of money. Hence, a depression.