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.
1 answer
The best response to complete the table is:
Declines in stock prices eliminated personal savings and left investors in debt.
This response directly correlates with the cause of investors buying stocks "on margin," as buying on margin involves borrowing money to purchase stocks. When stock prices decline, the value of those stocks decreases, leading to significant losses and potential debt for investors.
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