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How did the reduction in farm prices lead to foreclosures, and what was the effect of these foreclosures on the national economy?

A.) Many farmers were unable to meet their obligations to the banks. The banks lost money and many of them were forced to close, which created a financial panic that ultimately caused businesses and factories to close.

B.) Farmers were unable to meet their obligations to the banks so the banks took their land. This left families homeless and unable to put money back into the economy.

C.) Many farmers decided to stop farming and this lead to foreclosures of their farms. The effect of these foreclosures put more out there for sale and large corporations began buying up the land.

D.) Farming was becoming less desirable and many farmers went to work in factories. This effected the economy because food was not being produced at a profitable rate.