Question

Which one of these factors led to the market crash of 1929? A) high interest rates B) low tariff barriers C) high taxes D) excessive credit expansion

Answer 1

I'm not sure but I think the answer is d

Answer 2

The answer is option D "excessive credit expansion." Credit expansion is the policy where the central bank produces additional money in order to purchase debt from the government or from entrepreneurs, such as banks. So, if banks kept producing money it would lead to market crash, and in this case it did.

Hope this helps!