Answer:
D. Farmers were unable to pay back loans they had taken out to produce crops that were easily sold during the war.
Explanation:
The Great Depression of the 1930s was the largest recession in history and its causes were overproduction of goods and the expansion of unbridled credit by banks. The American economy was experiencing a period of euphoria during the 1920s. The US had become the world's leading economic powerhouse and was the largest supplier of manufactures to Europe. In this scenario, banks have expanded their credit rampantly to sustain the increase in production. Similarly, the agriculture sector expanded very rapidly, with farmers demanding credit from banks to invest in food production.
However, production increased so that there was not enough consumer market to demand products and food. This situation worsened at the end of the war, when Europe cut back on US imports. Entrepreneurs and farmers have been unable to repay their loans to banks and the financial system has collapsed.
