Question

The stock market crash of 1929 was a direct result of . . .

A) a belief in the strength of the economy.
B) a lack of confidence in the economy.
C) a surge of growth of the economy.
D) an underproduction of goods in the economy.

Answer 1

The stock market crash of 1929 was a result of speculative investments, a lack of economic stability, and a subsequent loss of confidence leading to panic. While initial confidence was high, it eroded as deeper economic issues surfaced.

Step-by-step explanation:

The stock market crash of 1929 was a result of multiple factors, including financial speculation, inequality in wealth distribution, and unsustainable economic growth. Confidence in the economy was initially high which led to rampant speculation and excessive investments on margin; however, as economic weaknesses became apparent, confidence waned, and a widespread panic ensued. Other factors included international economic problems, poor income distribution, and misguided financial policies.

Answer B) investors made risky investments with borrowed money is also correct, which was one of the catalysts that led to the crash. This borrowing to invest, known as buying on margin, made the financial system particularly vulnerable to a downturn.

Answer 2

D. an underproduction of goods in the economy.

Step-by-step explanation:

I put answer A at first like the other person answered on this question, and I got it wrong!