13. Which of these factors helped hide economic problems in the 1920s? (1 point)Investors lost confidence in the market. Farmers sold crop surpluses to pay off their debts. Americans purchased many consumer goods on credit. Wages increased at the same pace as worker productivity. 14. Farmers contributed to the problems that led to the Dust Bowl by (1 point)putting down new layers of topsoil. moving off of the plains to find new farmland. damming western rivers and using irrigation techniques. using intensive farming practices that removed protective grasses.

13. Americans purchased many consumer goods on credit.

The end of the Great War saw the United States’ commitment towards restructuring its industrial production and economy to pre-war levels when the highest levels of commercial production were obtained. All American industries were committed to introducing new consumer products in the market, which was designed to introduce the purchaser to the modern standards of living, A general sense of economic prosperity prevailed, with a significant amount of cash flow within the economy. During this period, the credit system was formulated, which allowed consumers to possess luxury items or commodities on credit, which meant that they would not require to pay the entire amount at the time of purchase, but could pay small monthly installments over a certain time period.

14. Farmers continued to use intensive farming practices that removed protective grasses.  

Agricultural production also made significant strides to supply ample grain to feed the increasing working population of the United States. This led the farmers to employ extensive agricultural methods to ensure the maximization of agricultural output. The farmers intensively cultivated the fertile semi-arid prairie lands to gain maximum profits and earn back their invested amounts, but the loss of protective grass cover and soil conditioning led to massive droughts, causing the wind to blow away the fertile layer of topsoil. With the loss of fertility, the lands were rendered barren.

Further Explanation:

13. The credit system had its own contributions to the outcome of the Great Depression. The constant issuing of credit by banks was considered profitable, as the banks would be able to charge a certain amount of interest on the loans issued. However, as the stock market crashed, panicked American citizens tried to sell all of their stocks so that they could get some of the money invested, which resulted in stock prices falling to their lowest levels imaginable. With no money in circulation, banks closed their doors, as people lost their savings and jobs. With no access to income, people could not repay their credit amounts, resulting in shops going bankrupt.

14. The mechanization of farming techniques was adopted by farmers to increase agricultural output. However, excessive production led to a significant lowering of wheat prices, which made farmers incur heavy losses on their investments. To reduce losses, farmers brought more land under extensive cultivation, without making arrangements for fallow land to recover. The grass cover held the precious topsoil, and its removal led to loss of fertile topsoil by the winds blowing away, thereby rendering the land barren and unfit for further cultivation.

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Answer Details:

Grade: High School

Chapter: The Great Depression

Subject: History

Keywords:

Great Depression, production, money flow, credit, crashing of the stock market, farming, mechanization of agriculture, erosion of topsoil, overproduction.