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 D, I'm not sure.
Nope, not D.
Would it be C then? That's what it sounds like from what you said Ms. Sue.
It's A. took this test already
To determine which of the options A, B, C, or D contributed to the start of the Great Depression, we need to analyze the ways in which the 1920s wealth gap affected the economy. Here's an explanation of each option:
A. The wealth gap led to a decline in stock investment during the 1920s: This option suggests that the wealth gap resulted in a decrease in stock market investments. During the 1920s, the stock market experienced a period of significant growth known as the "Roaring Twenties." However, the concentration of wealth among the rich meant that a large portion of the population had limited or no investment in stocks. This concentration of wealth could have contributed to a decline in stock investment among the majority of the population. While this factor does not directly explain the start of the Great Depression, the decline in stock investment did have some impact on the subsequent economic downturn.
B. A concentration of wealth led to less spending across the economy: This option implies that the unequal distribution of wealth resulted in reduced overall spending in the economy. When wealth is concentrated in the hands of a few, it limits the purchasing power of the majority, which can lead to decreased consumer demand. This decrease in demand can have negative consequences for businesses, causing them to reduce production and employment, ultimately impacting the overall economy. This option suggests a plausible relationship between the wealth gap and the start of the Great Depression.
C. Many of the rural poor were forced into subsistence farming: This option refers to rural poverty during the 1920s, suggesting that the wealth gap forced many people into subsistence farming. While this was a challenging situation for those affected, it does not directly explain the start of the Great Depression, which was primarily an urban phenomenon.
D. The wealth gap led to heavy emigration from the United States and shrinkage of the economy: This option claims that the wealth gap caused significant emigration from the United States and resulted in the economy's shrinkage. While it is accurate that the economic hardships during the Great Depression led to substantial emigration, the wealth gap itself was not the primary cause of this phenomenon or the shrinkage of the economy.
Considering the above explanations, option B, "A concentration of wealth led to less spending across the economy," appears to be the most accurate answer. The limited purchasing power of the majority due to a concentrated wealth distribution potentially decreased consumer demand, contributing to the start of the Great Depression.
No.
Fact: poor and middle class people spend almost all of the money they make. Rich people invest most of their money.