There were many causes of the Great Depression. During this time, the government
took actions to help the economy recover.
Identify whether each statement on the left was a cause of the Great Depression, an
action taken in response to the Depression, or an effect on American life that came
about as a result of the Depression.
Banks and other financial
institutions make
excessive loans.
1. Cause
The Federal Reserve
constricts the money
supply.
2. Action taken
3. Effect
Economic conditions
worsened, making it
harder for people to repay
debts.