Which of the following best explains why the Great Depression spread to Britain?
A. an increase in demand for luxury goods and underconsumption
B. a dramatic drop in American purchases of luxury items and overproduction
C. the harsh terms of the Treaty of Versailles and the credit system
D. a decline in the shipping industry and a reliance on German reparations
B. a dramatic drop in American purchases of luxury items and overproduction
During the Great Depression, the United States drastically reduced its imports from other countries, including Britain. This decline in exports, combined with an overproduction of goods, led to economic decline in Britain as well.