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When the Stock Market crashed in October, 1929a. it signaled the beginning of the...

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ramiyaou | Student, Undergraduate | (Level 1) Honors

Posted July 13, 2012 at 5:14 AM via web

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When the Stock Market crashed in October, 1929

a. it signaled the beginning of the collapse of the economy.     
    b. it didn't cause, but is generally considered the beginning of the Depression.     
    c. wiped out investors, brokers and corporations.     
    d. all the above took place.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted July 13, 2012 at 5:26 AM (Answer #1)

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The best answer to this is D.

The stock market crash of 1929 did not cause the Great Depression to happen.  Instead, it is seen as the beginning of the Depression.  It did help to create the Depression.  It did so by ruining many investors and others.  People had bet too heavily on the idea that the stock prices would keep rising.  Many of them borrowed a lot of money to invest.  When stock prices crashed, they were wiped out.  This helped lead to the Depression.  Therefore, all of A through C are true to some degree, making D the best answer.

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