The cause & effect relationship of Great Depression is best described as when the stock market crashed which resulted lot of American buyer household items on credit.
What is the Great Depression?
This was a period of economic downturn in the history of the industrialized world that was mainly caused by the collapse of the stock market in the late 1920s.
The other cause that contributed to great depression includes:
- lower interest rates set by the Federal Reserve
- overspending by farmers
- overproduction by factories
Some of the effect of the great depression of America includes
- high rate of unemployment
- high rate of homelessness
- collapse of international trade
- high rate of deflation etc
Hence, the relationship of Great Depression is best described as when the stock market crashed which resulted lot of American buyer household items on credit.
Therefore, the Option D is correct.
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