Which was not one of the causes of the Great Depression?
(Points : 5)
excessive income taxes
speculative stock purchases
risky banking practices
severe drought
Excessive income tax
I'll be happy to check your answer.
The cause of the Great Depression that was not one of the listed options is excessive income taxes. The other three options, speculative stock purchases, risky banking practices, and severe drought, were all contributing factors to the economic downturn.
To determine which was not one of the causes of the Great Depression, we need to examine each option individually and eliminate the one that does not apply.
1. Excessive income taxes: One of the causes of the Great Depression was not excessive income taxes. During the 1930s, income tax rates were actually reduced as part of the government's attempt to stimulate economic growth and alleviate the effects of the Depression.
2. Speculative stock purchases: Speculative stock purchases were indeed one of the causes of the Great Depression. The stock market crash of 1929, triggered by speculative investing and the subsequent panic selling, is considered a significant factor contributing to the economic downturn.
3. Risky banking practices: Risky banking practices, such as overextension of credit and unstable practices by financial institutions, were a major cause of the Great Depression. Banks made unwise loans and invested in risky ventures, leading to widespread bank failures and a loss of public confidence in the banking system.
4. Severe drought: Although severe drought, particularly in the farming regions of the United States, did create significant hardships during the Great Depression, it was not one of the main causes. Reduced agricultural production exacerbated economic challenges, but the root causes were primarily related to issues within the financial and business sectors.
Based on this analysis, excessive income taxes were not one of the causes of the Great Depression. Thus, excessive income taxes is the correct answer.