Answer:
The correct answer is C. The economic developments that contributed to the Great Depression were the raising of tariffs in different countries throughout the world, that led to a restriction of trade.
Explanation:
In 1925, the world economy was fairly balanced: production had returned to the level that existed before World War I, the price of raw materials seemed stabilized and countries that were going through a period of high conjuncture were numerous. However, it was not a return to the Belle Epoque. A number of traditional equilibria were altered: production and welfare progressed dramatically in some parts (United States, Japan), while in others (particularly in the United Kingdom), pre-war prosperity was lost, The population was overwhelmed by unemployment and endemic crises.
At the same time, Americans complicated the position of Europeans in a unique way. The international debt could only be paid with gold or merchandise, and the Americans stopped their imports from Europe with the new customs duties, increasingly higher, while using their superiority to impose their exports to Europe.
This caused international trade to slow down, causing a decrease in the income of each country, and therefore, a decrease in the income of the different companies. As a result, this led to a fall in the stock values of these companies, which led to the stock market crash in 1929.
