Answer :
The correct answers are:
A. It slowed economic activity in the United States.
D. It caused a recession to spread around the world.
The decision to raise interest rates contributed to the Great Depression because of these things.
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The Federal Reserve boosted interest rates in 1928 and 1929 in the hopes of curbing the fast rise in stock values. Higher interest rates stifled interest-sensitive investment in areas like construction and automotive purchases, resulting in lower output.
The correct option is A and D as in this way the decision to raise interest rates contribute to the Great Depression.
Thus the other Options are incorrect as:
- Option B is incorrect as it did not prevent investors from speculating in the securities market.
- Option C is incorrect as it did not raise the international gold standard.
Thus the other two options are correct options for the decision to raise interest rates contributed to the Great Depression.
For more information about Great Depression refer to the link:
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