True or False: Because people could not pay back loans and many people lost their jobs, there was an economic depression.
History · High School · Thu Feb 04 2021
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Answer: True. The statement provides a general cause-and-effect scenario that has been observed in history: when a significant number of individuals or businesses cannot pay back their loans and unemployment rises sharply, these factors can contribute to or signal the onset of an economic depression. An economic depression is characterized by a prolonged period of economic downturn, which includes widespread unemployment, a severe decline in economic activity, bank failures, and often a significant decrease in the availability of credit.