THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
What was a major factor that caused the Great Depression?
|
|
a decline in crop prodcution
|
|
|
high wages paid by employers
|
|
|
increases in the tax rate for corporations
|
|
|
excessive speculation in the stock market
|
Explanation:
Detailed explanation-1: -The market crashed from “over speculation.” This is when stocks become worth a lot more than the actual value of the company. People were buying stocks on credit from the banks, but the rise in the market wasn’t based on reality. When the economy began to slow, stocks began to fall.
Detailed explanation-2: -By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the stock market crash of 1929 were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.
There is 1 question to complete.