Summarize the causes of the global economic instability that emerged in the 1920s (1 point)
A.Global economic instability during the 1920s was caused by people paying off their debts as their incomes increased, which weakened the stock market
B.Global economic instability during the 1920s was caused by the rise of communism in Europe, which led to poltical unrest that weakened the stock market
C.Global economic instability during the 1920s was caused by the overproduction of the Ford Model T car 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
D. Global economic instability during the 1920s was caused by unequal wealth distribution and high levels of debt that 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.
The correct answer would be D. Global economic instability during the 1920s was caused by unequal wealth distribution and high levels of debt that weakened the stock market.
To arrive at this answer, let's break down the options:
- Option A suggests that people paying off their debts as their incomes increased weakened the stock market. This is not the primary cause of global economic instability in the 1920s, as it does not account for the larger systemic issues at play.
- Option B suggests that the rise of communism in Europe and political unrest weakened the stock market. While political unrest can have an impact on the economy, the rise of communism alone does not provide a comprehensive explanation for global economic instability during the 1920s.
- Option C suggests that the overproduction of the Ford Model T car weakened the stock market. While overproduction can lead to economic instability in specific industries, it does not account for the larger global economic instability during the 1920s.
- Option D correctly highlights the root causes of global economic instability during the 1920s. This period was characterized by unequal wealth distribution and high levels of debt. The concentration of wealth in the hands of a few individuals, coupled with the extensive use of credit, created an unsustainable economic environment that eventually led to a stock market crash and subsequent economic crises.
Therefore, the correct answer is D: Global economic instability during the 1920s was caused by unequal wealth distribution and high levels of debt that weakened the stock market.