Question

Which of the following factors caused the stock market to crash in 1929?

(A) low tariff rates
B the poor returns on government bonds in 1929
the tax policies of the 1920s
D) the buying of great amounts of stock on margin
the high rate of deflation in the 1920s
E

Answer 1

The stock market crash of 1929 was caused by buying stocks on margin, high rate of deflation, and tax policies of the 1920s.

Step-by-step explanation:

The stock market crash in 1929, also known as Black Tuesday, was caused by several factors. One of the factors was the buying of great amounts of stock on margin, which means investors borrowed money to buy stocks. When stock prices plummeted, these investors faced massive losses and could not repay the loans. Another factor was the high rate of deflation in the 1920s, which led to a decrease in consumer spending and business profits. Additionally, the tax policies of the 1920s that favored the wealthy contributed to the growing wealth gap and economic instability.

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