1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mr_godi [17]
2 years ago
11

How did the U.S. Stock market contribute to economic instability before the Great Depression?

History
2 answers:
xenn [34]2 years ago
5 0
The stock market crashed right before the Great Depression, causing many to lose money in the process.
Nookie1986 [14]2 years ago
4 0

The Great Depression of the 1930s was the largest recession in history and its causes were overproduction of goods and the expansion of unbridled credit by banks.

The American economy was experiencing a period of euphoria during the 1920s. The US had become the world's leading economic powerhouse and was the largest supplier of manufactures to Europe.

The situation began to change in the late 1920s. Rebuilt from World War I, European nations drastically reduced imports of industrialized and agricultural products from the United States. As exports to Europe declined, domestic demand was not sufficient to dispose of all corporate output and product inventories increased. Most of these companies had shares in the New York Stock Exchange and millions of Americans had investments in these shares.

In October 1929, realizing the devaluation of the shares of many companies, there was a rush of investors intending to sell their shares. The effect was devastating as the stock depreciated sharply in a few days. Very wealthy people moved overnight to the poor class. The number of business failures was huge and unemployment reached almost 30% of workers. Thus the US plunges into the biggest economic crisis in its history, the Great Depression.

You might be interested in
Why did the Battle of Bunker Hill change British strategy at the beginning of the American Revolutionary War?
Ainat [17]
British casualties were very high, the british realized they would have to up their game
3 0
3 years ago
What do you do when you have to play in a group with someone you don't like? What advice is given here by the cellists? 1. 2.​
anastassius [24]

a few options

a. you could ignore them (probably don't do this)

b. pretend they are someone you like

c. just figure out how to respect them without trying to have full conversations

4 0
2 years ago
What are some of the challenges faced by developing countries with regards to health care? What part does WHO play in helping to
Nikolay [14]
Compounding is one of the challenges faced by developing countries in regards to health care. The WHO plays a big part in these challenges, because there needs to be a person or group with a stable financial situation to donate or offer help. If someone who does not have any power or money help, there is a less likely chance in making a difference in regards to the problem.
8 0
3 years ago
Read 2 more answers
At the end of the French and Indian War in 1763, the British government maintained a national debt in excess of 122 million poun
sleet_krkn [62]
D. Trade with France occurred
3 0
3 years ago
Public Domain
diamong [38]

Answer:

The Correct answer is C: Production reaches its highest point, and then the economy begins to contract.

Hope this helps

Explanation:

5 0
3 years ago
Other questions:
  • 57 political jurisdictions in the united states
    13·2 answers
  • Deadly pandemics have claimed lives around the world for hundreds of years with the most recent influenza pandemic being?
    9·2 answers
  • What was henry grady's vision for the new south
    10·1 answer
  • Governments are important because they
    10·1 answer
  • Which statement best explains Spanish interaction with American indains
    9·1 answer
  • I need help please only 2 questions History
    11·1 answer
  • What describes the second Great Awakening of the early 1800s?
    14·1 answer
  • Which are considered accomplishments of the Freedmen’s Bureau in North Carolina? Check all that apply.
    7·2 answers
  • Why did Canada side with the Americans during the revolutionary war?
    8·1 answer
  • Select the correct answer. A force F making an angle with the horizontal is acting on an object resting on the table. Which stat
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!