QUESTION IMAGE
Question
what was one of the causes of the great depression?
tariffs on world trade
stock market speculation
bank failures and monetary policy of federal reserve system
internal struggles in the us government
The Great Depression was a severe worldwide economic depression. Stock market speculation was a significant cause. People were buying stocks on margin (borrowing money to invest). When the stock market crashed in 1929 (Black Tuesday), it led to a loss of confidence, bank runs, and a downward spiral in the economy. Tariffs (like the Smoot - Hawley Tariff) did contribute but were more of an exacerbating factor. Bank failures were a result of the stock market crash and the subsequent economic downturn rather than the initial cause. Internal struggles in the US government were not a primary cause compared to stock market speculation.
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
Stock market speculation