n which of the following ways did the 1920s wealth gap contribute to the start of the Great Depression?

Question

(1 point)
Responses

The wealth gap led to a decline in stock investment during the 1920s.
The wealth gap led to a decline in stock investment during the 1920s.

A concentration of wealth led to less spending across the economy.
A concentration of wealth led to less spending across the economy.

Many of the rural poor were forced into subsistence farming.
Many of the rural poor were forced into subsistence farming.

The wealth gap led to heavy emigration from the United States and shrinkage of the economy.

Answer 1

The most accurate response is:

A concentration of wealth led to less spending across the economy.

In the 1920s, the wealth was concentrated in the hands of a few, which meant that the majority of people had less disposable income. This lack of spending contributed to economic stagnation and ultimately helped trigger the Great Depression when the economy began to falter.