Which of the following best explains why the Great Depression spread to Britain?(1 point)
Responses
an increase in demand for luxury goods and underconsumption
an increase in demand for luxury goods and underconsumption
a decline in the shipping industry and a reliance on German reparations
a decline in the shipping industry and a reliance on German reparations
a dramatic drop in American purchases of luxury items and overproduction
a dramatic drop in American purchases of luxury items and overproduction
the harsh terms of the Treaty of Versailles and the credit system
a dramatic drop in American purchases of luxury items and overproduction
This best explains why the Great Depression spread to Britain because a significant portion of Britain's economy relied on exports to the United States. When American purchases of luxury items dropped and there was overproduction in many industries, it had a negative impact on the British economy as well.