Summarize the causes of the global economic instability that emerged in the 1920s.

a. Global economic instability during the 1920s was caused by the rise of communism in Europe, which led to political unrest that weakened the stock market.

b. Global economic instability during the 1920s was caused by the overproduction of the Ford Model T car, which weakened the stock market.

c. Global economic instability during the 1920s was caused by people paying off their debts as their incomes increased, which weakened the stock market.

d. Global economic instability during the 1920s was caused by unequal wealth distribution and high levels of debt that weakened the stock market.

1 answer

Global economic instability in the 1920s was primarily caused by unequal wealth distribution and high levels of debt, which contributed to weaknesses in the stock market. This underlying economic disparity and excessive borrowing created an unstable financial environment that ultimately led to the market crash at the end of the decade.