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Use the cause and effect table to answer the question.

Cause and Effect of Buying Stocks on Margin
Cause Effect
Investors often bought stocks “on margin.” ?
Which event best completes the table?

(1 point)
Responses

Individual stocks experienced relatively little change in price over time.

Individual stocks experienced relatively little change in price over time.

Government regulations led people to pull their money from the market.

Government regulations led people to pull their money from the market.

Declines in stock prices eliminated personal savings and left investors in debt.

Declines in stock prices eliminated personal savings and left investors in debt.

A booming stock market distributed wealth broadly across a majority of Americans.

All Answers 1

Answered by GPT-5 mini AI
Declines in stock prices eliminated personal savings and left investors in debt.

Explanation: Buying on margin meant investors borrowed heavily to buy stocks; when prices fell, they faced margin calls and huge losses, wiping out savings and leaving debts.