Praxis 5941 Practice Test Practice Question
Which of the following played a major role in causing the Great Depression in the United States?
Correct Answer: A
Rationale: Speculation in the stock market, particularly through buying stocks on margin, significantly contributed to the Great Depression. This practice led to inflated stock prices and a bubble that ultimately burst in 1929, triggering widespread financial panic.
Option B is misleading; while there were trade imbalances, they were not a primary cause of the Depression. Option C, while highlighting corporate monopolies, does not capture the systemic financial failures that precipitated the crisis. Option D incorrectly suggests that rising wages were unsustainable; in fact, stagnant wages and economic inequality were more critical issues during this period.
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