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Which factor(s) did you identify?

A. stock market speculation too much
B. buying of stocks on margin low farm prices
C. bank failures too much reliance on consumer credit
D. a drop in consumer spending
E. industrial overproduction failing consumer confidence

User Wimh
by
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1 Answer

4 votes

The answer is A. stock market speculation too much.

Stock market speculation was a major factor that contributed to the crash of the Stock Market and the Great Depression. In the 1920s, there was a widespread belief that the stock market would continue to rise indefinitely.

This led to a surge in speculation, as people borrowed money to buy stocks on margin. This means that they only had to put down a small amount of money upfront, and they borrowed the rest from their brokers.

As the stock market continued to rise, people became increasingly confident that they would be able to make a quick profit. This led to even more speculation, and stock prices became increasingly inflated. However, the stock market was not immune to economic downturns. In 1929, the stock market crashed, and stock prices plummeted. This led to widespread panic, as people rushed to sell their stocks before they lost even more money.

The stock market crash had a devastating impact on the economy. It wiped out billions of dollars in wealth, and it led to a wave of bank failures. This, in turn, led to a sharp drop in consumer spending and investment, which further deepened the Depression.

Complete question:

List at least one factor that contributed to the crash of the Stock Market and the Great Depression. Which factor(s) did you identify?

A. stock market speculation too much

B. buying of stocks on margin low farm prices

C. bank failures too much reliance on consumer credit

D. a drop in consumer spending

E. industrial overproduction failing consumer confidence

User Sierrodc
by
7.7k points