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AssignmentMultiple Select

Global Economic Crisis

Question 3 • LUSD-World History(B) (A-G)

Which factors led to a weakening economy in the United States? Check all that apply.speculation in the stock marketunequal distribution of wealthincreasing demand for goodsrunaway inflationoverproduction

Answer
A
speculation in the stock market
B
unequal distribution of wealth
C
increasing demand for goods
D
runaway inflation
E
overproduction

Explanation

Speculation in the stock market, unequal distribution of wealth, and overproduction all weakened the U.S. economy before the Great Depression. Stock speculation made markets unstable, wealth inequality limited many consumers’ ability to buy goods, and businesses produced more goods than people could afford to purchase. Increasing demand would generally support the economy, while runaway inflation was not a principal cause of the downturn.

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