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The Great Depression of the 1930s was precipitated by several key imbalances, including widespread Stock Market speculation, which led to inflated asset prices that ultimately crashed. Additionally, overproduction in industries like agriculture and manufacturing resulted in excess supply, leading to falling prices and reduced profits. Bank failures and a lack of consumer confidence further exacerbated the economic downturn, causing massive unemployment and a contraction of the money supply. Lastly, international trade imbalances and protectionist policies, such as the Smoot-Hawley Tariff, worsened the global economic situation.

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