QUESTION IMAGE
Question
26 - c - rusd united states history and geography semester a_90 - b9770 - 9b23 - 1330c1
depression and the new deal
a main effect of speculative investment during the 1920s was that it
led to overproduction in the
agricultural industry.
resulted in stocks gaining
value over time.
contributed to the stock
market crash of 1929.
led to great economic
growth.
Speculative investment in the 1920s involved risky stock - market practices like buying on margin. This created an artificial boom in stock prices. When confidence waned, it triggered a mass sell - off, which was a major factor in the 1929 stock market crash. Overproduction in agriculture was due to other factors (like technological advances and international market changes), not speculative investment. Stocks did not gain value over time in a sustainable way (the boom was artificial), and speculative investment led to a bubble, not great economic growth.
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contributed to the stock market crash of 1929.