Question

What contributed most to the stock market crash in 1929?

overspending by the government on social and environmental programs
O a lack of investment in new businesses and ideas
O excessive borrowing and buying stocks on margin
O too much government regulation on the economy

Answer 1

The stock market crash in 1929 was primarily caused by excessive borrowing and buying stocks on margin, which led to a massive sell-off and market crash.

Step-by-step explanation:

The stock market crash in 1929 was primarily caused by excessive borrowing and buying stocks on margin.

During the 1920s, many investors purchased stocks on margin, which meant they borrowed money to buy stocks. When the stock prices dropped, these investors had to sell their stocks to repay their loans, leading to a massive sell-off that caused the market to crash.

This crash was further intensified by a lack of investment in new businesses and ideas, as well as overspending by the government on social and environmental programs, which weakened the overall economy.

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