Question

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

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.

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.