In which of the following ways did the 1920s wealth gap contribute to the start of the Great Depression.
A. The wealth gap led to a decline in stock investment during the 1920s
B. A concentration of wealth led to less spending across the economy
C. Many of the rural poor were forced into subsistence farming
D. The wealth gap led to heavy emigration from the United Sates and shrinkage of the economy
I think its A based off of my resources but I'm not 100% sure
No, it's not A.
So it would be B then?
Yes, B.
Thank you Ms. Sue and Mr. Reed!
You're welcome.
To determine the correct answer, let's analyze each option:
A. The wealth gap led to a decline in stock investment during the 1920s.
This option suggests that the wealth gap directly impacted stock investments, leading to a decline. To verify if this is accurate, you can examine historical data on stock investments during the 1920s, specifically looking for any relationship with the wealth gap. Check reliable sources such as books, academic journals, or reputable websites dedicated to economic history.
B. A concentration of wealth led to less spending across the economy.
This option implies that a concentration of wealth resulted in reduced spending, thus contributing to the Great Depression. To confirm whether this is true, you can research the relationship between wealth concentration and consumer spending in the 1920s. Economic analyses, scholarly articles, and books on the Great Depression should provide insights on this matter.
C. Many of the rural poor were forced into subsistence farming.
This option suggests that the wealth gap caused many rural poor individuals to become subsistence farmers. While this may have been a consequence of the wealth gap, it does not directly address how it contributed to the Great Depression. This choice seems less relevant to the question.
D. The wealth gap led to heavy emigration from the United States and shrinkage of the economy.
This option states that the wealth gap resulted in significant emigration from the United States, leading to an economic shrinkage. To determine the accuracy of this statement, you could explore historical records and economic studies that discuss the relationship between the wealth gap, emigration patterns, and the overall economy during the 1920s.
By conducting thorough research and verifying the information from reliable sources, you can confidently identify the correct answer.