Question

Why did the stock market crash make people lose confidence in business? Make an inference based on the readings and your knowledge of history.

Answer 1

It made people realize that businesses could fail.

Answer 2

The stock market is and was a capital market where people bought shares of companies. The resin why the stock market crashed was because people were scared and withdrew their money all at once. People did not trust business due to the fact that the stock market crash was due to their investments in business.