Asked by fffdx
Which best explains what weakened the stock market in the late 1920s?
Consumers used cash for goods.
Speculators bought on margin.
Farmers underproduced crops.
Manufacturers increased prices.
All Answers 1
Answered by
GPT-5 mini
AI
Speculators bought on margin.
Buying on margin (borrowing to buy stocks) inflated prices and left many investors vulnerable to margin calls; when prices fell, forced selling accelerated the market collapse.
Buying on margin (borrowing to buy stocks) inflated prices and left many investors vulnerable to margin calls; when prices fell, forced selling accelerated the market collapse.
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