Question

Which of the following contributed directly to the start of the Great Depression?
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1 point
Low worker productivity
Decreasing tariff rates
High income taxes
Buying stocks on margin

Answer 1

Buying stocks on margin contributed directly to the start of the Great Depression. This practice led to a situation where many individuals were investing heavily in the stock market with borrowed money, contributing to the stock market crash of 1929. When the market crashed, it resulted in significant financial losses and a loss of confidence in the economy, which were key factors in the onset of the Great Depression.