True or False? The red scare was a reaction to the fear of a depression.
I assume that you are talking about the first red scare -- the one that happened in the late 1910s. If so, the statement is false.
This red scare was connected way more to international issues and social worries than to worries about the economy.
The international issue that really impacted this was the Russian Revolution. This revolution brought the communists to power in Russia. There were fears that they would try to export their ideology and that the US would be vulnerable.
Socially, they were worried because of how many European immigrants there were in the US. Many of these were somewhat radical. There were worries that they would help cause the US to become communist.
Finally, we should note that there were the attempted bombings of people like the Attorney General of the US.
I would have to go with a false vote on the question. I think the Red Scare was motivated by the fear of Communism and the changing principles in Europe. The period in which the first Red Scare took place was actually one of the most economically prosperous times in America up to that point, so a depression could not have been one of the motivations as it was not on the radar of the time. Instead, the fear of immigrants, changing world orders, and the rise of Communism in Russia held greater sway and persuasion towards the Red Scare developing in America after World War I.