Question

Question: What were the factors that led to the stock market collapse on Black Tuesday?

Responses:

underproduction, lack of government regulation, and bank runs  

underproduction, too much government regulation, and bank runs  

overproduction, too much government regulation, and bank runs  

overproduction, lack of government regulation, and bank runs

Answer 1

overproduction, lack of government regulation, and bank runs

Explanation: overproduction and falling demand pushed prices and corporate profits down; lack of regulation allowed rampant speculation and buying on margin; and bank runs and failing banks tightened credit and amplified the crash.