10 Points! PLEEEEEEEEEZ!!!?

Question

One reason for the stock market crash was:

a - the economy was fueled by too much by the spending of the wealthy-the poor were unable to purchase all the necessities.

b - the economy was fueled by the poorest 10%, most of whom had some disposable income-when they lost jobs the economy suffered.

c - difficult to figure out, economists still have not figured out why the market crashed.

d - the middle class had not put enough money in the market to keep it growing.

PLZ help. 10 Points for best answer. Thank you!

Answer 1

The causes of the Great Depression are debated, because it was so extensive, the stock market crash was but one piece. The second link shows it had its makings long before Hoover took office. The third link tells about how Hoover warned Coolidge of the very thing that later happened in 1929, the seeds had already been planted. As for trying to recover, the New York Times reported in 1930, "No one in his place could have done more." One of the things to look for is buying stocks on margin. Almost immediately, Hoover asked that the margin (buying stocks on credit) limits be raised. Most economists, especially Galbraith, point to enormous debt load in general as a cause of the Great Depression, but margin calls during the crash were what wiped out enormous fortunes.

Answer 2

None of your possible answers fall within the typically suggested causes.

While there have been many suggested explanations for the Crash, no one can fully account for it. Here are some of the explanations proposed:

1. Stocks were Overpriced

Many people believe that stocks were overpriced and the crash brought the share prices back to a normal level. However, some studies using standard measures of stock value, such as Price/Earnings ratios and Price/Dividend ratios, argue that the share prices were not too high.

2. Massive Fraud and Illegal Activity

A number of people believe that fraud and illegal activity was one of the causes of the 1929 Crash. However, evidence revealed that there was probably very little actual insider trading or illegal manipulation.

3. Margin Buying

Margin buying is another scapegoat for the cause of the Crash. However, it is not the main reason because there was very little margin outstanding relative to the value of the market (the margin averaged less than five percent of the market value).

4. Federal Reserve Policy

The new President of the Federal Reserve Board Adolph Miller tightened the monetary policy and set out to lower the stock prices since he perceived that speculation led stocks to be overpriced, causing damage to the economy. Also, starting from the beginning of 1929, the interest rate charged on broker loans rose tremendously. This policy reduced the amount of broker loans that originated from banks and lowered the liquidity of non-financial and other corporation that financed brokers and dealers.

5. Public Officials' Repeated Statements

Many public officials commented that the stock prices were too high. For example, the newly elected President of the United States, Herbert Hoover, publicly stated that stocks were overvalued and that speculation hurt the economy. Hoover's statement suggested to the public the lengths he was willing to go to control the stock market. These kinds of statements encouraged investors to believe that the market would continue to be strong, which could be one of the causes of the Crash.

Answer 3

The answer is letter "a"...The economy was fueled too much by the spending of the wealthy...the poor were unable to purchase all the necessities.

Answer 4

The Dot Com collapse.

Answer 5

It is d...im not that great of a history whiz, but I know that!

Answer 6

c

Answer 7

c..........