HISTORY
THE WORLD BETWEEN THE WARS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Why did the collapse of the Stock Market in New York have such a widespread economic effect?
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Too many wealthy people (job creators) lost their fortunes in the market crash, leading to the middle class having to pay most of the taxes
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The American economy was overly dependent on the suport of wealthy investors and the high demand for manufactured goods worldwide
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The Stock Market Crash along with the Dust Bowl, the uneven distribution of wealth, and an agricultural surplus to wreak havoc on the economy
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None of the above
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Explanation:
Detailed explanation-1: -Overproduction and Oversupply in Markets People were not buying stocks on fundamentals; they were buying in anticipation of rising share prices. Rising share prices brought more people into the markets, convinced that it was easy money.
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