Which of these factors led to the stock market crash of 1929? A) high interest rates. B) low tariff barriers C) high taxes D) excessive credit expansion

Question

Business

Emerson Yates

8 December, 05:05

Which of these factors led to the stock market crash of 1929? A) high interest rates. B) low tariff barriers C) high taxes D) excessive credit expansion

+2

Answers (2)

Know the Answer?

Kristen Avery · Answer 1

D) excessive credit expansion

These are some of the most significant economic factors behind the stock market crash of 1929. In the 1920s, there was a rapid growth in bank credit and loans in the US.

Braedon · Answer 2

I believe the answer is: D) excessive credit expansion

Excessive credit expansion allow a person to obtain high value assets even if they do not have any money to pay for it. This create an economic bubble that eventually popped overtime, creating a massive economic depression that almost drive the nation into bankruptcy.