Which statement best explains by the great depression spread throughout the world? Europe owed reparations to Germany, and when it couldn’t pay Germany collapse. High unemployment lead people to lose faith in democracy and left many countries. Vulnerable to attack. Thanks continue to lend money to countries and individuals, but it was not enough. Desperate governments tried to protect their economies from foreign competition, and increase taxes on imports.

Desperate governments tried to protect their economies from foreign competition, and increase taxes on imports is the statement that best explains how the Great Depression spread throughout the world.