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The three main factors contributing to the severity of the Great Depression were:

The over-stimulated economic euphoria of the 1920s.
The draconian monetary policy pursued by the Federal Reserve Bank from 1930-1933.
The sudden rise of global protectionism leading to the collapse of world trade. The dramatic rise of income taxes in 1932 may have also prolonged the downturn.

(More details and other factors at the site listed below)

2006-07-17 13:08:22 · answer #1 · answered by ted_armentrout 5 · 0 0

No money in Europe to buy American goods due to Worldwar 1.

2006-07-17 13:07:29 · answer #2 · answered by veilchen 6 · 0 0

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