1. (1). A major problem during the Great Depression was pervasive nation-wide deflation, which can best be explained as _________________.
A. An increase in prices
B. A decrease in the value of the dollar
C. A drop in consumer spending
D. A decrease in the amount of goods
E. The reduction in prices, wages, and the overall economy

2. (2). Overproduction in farm products and consumer goods, such as refrigerators, cars, radios, etc. eventually led to deflation because _________________.
A. When there was too much supply the prices of goods fell
B. After the prices of goods were reduced, owners produced more goods
C. After the prices of goods were reduced, owners fired workers to reduce costs
D. The farm and business products created during the 1920’s were not valuable, which is why the prices of those goods dropped
E. Answers “A” and “B” are correct
F. Answers “A” and “C” are correct
G. Answers “B” and “D” are correct

3. Deflation

4. (3). The Republicans Party, led by presidents Warren Harding and Calvin Coolidge during much of the 1920’s, displayed confidence due to __________ all increasing during the majority of the decade.
A. Unemployment, bankruptcies, and consumer spending
B. Consumer consumption, stock market values, and the economy in general
C. Foreclosures of farms, consumer debt, and the economy in general

5. (4). During the 1920’s, farmers made up __________ of the American workforce.
B. 1/10
C. 1/2
D. 1/4

6. (5). By 1927, Americans purchased 75% of household goods on credit
(5). By 1927, Americans purchased 75% of household goods on credit. The best explanation for this is the following: ________________.
A. Americans purchased good on the installment plan, putting down only a small amount of the total cost of the good and then making monthly payments
B. Because of the uneven distribution wealth, the middle class did not have enough income to purchase goods with cash
C. The wealthy were greedy, as they have always been since the beginning of time

7. (6). The causes of the Dust Bowl include all of the following _________________.
A. Farmers over-plowed the Great Plains, hoping for increased profits
B. Warm weather and drought conditions loosen the top soil
C. Crop prices dropped, so farmers let their fields go fallow
D. Answer “A,” “B,” and “C” are correct
E. Answer “A” and “B” are correct

8. Dust Bowl
- “Black Sunday,” April 14, 1935 …
- Causes of the storms

9. (7). In the summer of 1919, race riots occur in many major cities in the North because _____________.
A. The Great Migration occurred, that is, more than 500,000 African Americans moved out of the South during WWI to the Northeast and Midwest in search of better jobs and opportunities
B. Soldiers that had fought in WWI, largely white American males, returned to their home cities and towns now looking for jobs, and combined with the African Americans that had moved to many Northern cities during the war, this created tense race relations
C. African Americans had protested in many Northern cities desiring the right to vote, which only further intensified race relations

10. (8). The best explanation of the Dawes Plan is the following: ________________.
A. German banks provided loans to the government of Austria-Hungary, so it could pay off Serbia for all of the damage during WWI
B. American banks provided loans to the government of Germany, so it could pay off France and Great Britain, as compensation for damage during WWI and then Great Britain and France used this money to pay back the United States
C. This was a plan to cancel all WWI debts, because Senator Henry Dawes believed the massive WWI debts would eventually lead to another world war

11. (9). The best explanation of the Teapot Dome Scandal is the following: ________________.
A. Charles Forbes, the Secretary of Veterans Affairs, sold hospital supplies from VA Hospitals around the country and he kept the profits in his teapot
B. Harry Daugherty, the Attorney General, received bribes from other countries and businesses for favorable treatment by the United States
C. Albert Fall, the Secretary of the Interior, secretly sold oil allocated for the U.S. Navy’s strategic reserve in Wyoming as a result made almost ½ a million dollars from the sales