Final answer:
The severity of the Great Depression was caused by a combination of factors, including stock market crashes, economic downturns, and agricultural surpluses.
Step-by-step explanation:
The severity of the Great Depression was caused by a combination of factors, including stock market crashes, economic downturns, and agricultural surpluses.
The stock market crash of 1929 signaled the start of the Great Depression and resulted in widespread economic collapse and high unemployment. However, it was not the sole cause of the Great Depression. Other contributing factors included economic instability, poor income distribution, and international economic woes.
For example, during the 1920s, excessive use of margin borrowing led to a stock market bubble, where stock prices were driven up without a corresponding increase in company assets or earnings. When credit became tighter and people tried to sell more shares than there were new buyers, the bubble burst, contributing to the severity of the Great Depression.