One of the greatest reasons for the Great Depression was - A. people overspeculated in the stock market making the market artificially high B. Bank managers refused to make loans t... One of the greatest reasons for the Great Depression was - A. people overspeculated in the stock market making the market artificially high B. Bank managers refused to make loans to poor citizens that had been laid off C. The Federal Reserve increased interest rates for five consecutive years D. China passed protective tariffs that took a financial toll on American manufacturers
Understand the Problem
The question is asking for one of the main reasons that contributed to the onset of the Great Depression. The options provided present different factors that may have led to the economic downturn.
Answer
People overspeculated in the stock market, making the market artificially high.
The final answer is people overspeculated in the stock market, making the market artificially high.
Answer for screen readers
The final answer is people overspeculated in the stock market, making the market artificially high.
More Information
The stock market crash of 1929 was a significant factor in causing the Great Depression. During the 1920s, many people invested heavily in the market, leading to an economic bubble. Once the bubble burst, it led to a severe economic downturn.
Tips
A common mistake is to focus on later economic policies like tariffs or interest rate changes without recognizing the immediate effect of the stock market speculation.
Sources
- Stock Market Crash of 1929 | Federal Reserve History - federalreservehistory.org
- The Stock Market Crash of 1929 and the Great Depression - investopedia.com
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