Which of the following has been suggested as a cause of the Great Depression?
A)a decline in the money supply
B)a decrease in stock prices
C)the collapse of the banking system
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above factors contributed to the Great Depression. The decline in the money supply, caused by policies of the Federal Reserve, led to a decrease in spending and business investment. The decrease in stock prices, caused by speculation and overvaluation, led to losses for investors and a decrease in consumer confidence. Finally, the collapse of the banking system, caused by bank failures and a lack of insurance, led to a decrease in the availability of credit and loss of savings for depositors.

Which of the Following Has Been Suggested as a Cause