Question

What is one reason that more people didn’t foresee the economic collapse of the 1930s? A. Few people understood the risks involved with buying stock on loan. B. The signals of economic slowdown did not appear to be serious to economists or politicians. C. Politicians, economists, and investors had a limited amount of economic data available to them at the time. D. The press focused its attention on the successes from Wall Street rather than true state of the economy.

Answer 1

A.few people understood the risk involved with buying stock on the loan.

Step-by-step explanation:

Answer 2

C. Politicians, economists, and investors had a limited amount of economic data available to them at the time.

Step-by-step explanation:

The Great Depression of the 1930s was the largest recession in history and its causes were overproduction of goods and the expansion of credit rampant by banks, which led to the widespread bankruptcy of banks and then businesses and families.

Among the above options, third alternative is the most correct. In the context of the 1920s and 1930s, economic theory was still not well developed and there were no good options for analytical tools either, which made economic forecasting difficult. Not even the Federal Reserve existed. Today there are modern instruments of predictability, such as models and statistical software, and a large regulatory apparatus.