THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What was a major cause of the stock market crash on October 29th, 1929?
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Stock prices went up so fast that investors could not keep up with the changes
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The government decided to close the stock market in New York
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Stock prices fell, investors panicked and sold their stocks, which led to more panic and more sales.
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A terrorist attack carried out by foreign radicals.
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Explanation:
Detailed explanation-1: -The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.
Detailed explanation-2: -Known as Black Thursday, the crash was preceded by a period of phenomenal growth and speculative expansion. A glut of supply and dissipating demand helped lead to the economic downturn as producers could no longer readily sell their products.
Detailed explanation-3: -Business houses closed their doors, factories shut down and banks failed. Farm income fell some 50 percent. By 1932 approximately one out of every four Americans was unemployed.
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