Which of the following was a cause of the Great Depression?

The Great Depression, which began in 1929, had several underlying causes, one of the most significant being overproduction and stock market speculation. In the 1920s, the U.S. economy experienced a boom characterized by rapid industrial growth and consumerism. This led to overproduction in various sectors, particularly in agriculture and manufacturing. Businesses produced more goods than the market could absorb, causing prices to fall and leading to widespread bankruptcies.

Simultaneously, stock market speculation was rampant. Many investors engaged in risky practices, such as buying stocks on margin (borrowing money to purchase more stocks), which inflated stock prices beyond their actual value. When confidence in the stock market waned and investors started to sell en masse, it resulted in the stock market crash of October 1929. This event was a key trigger that precipitated the Great Depression, leading to bank failures, loss of savings, and massive unemployment as the economy spiraled downward.

The other options, while related to the economic context of the time, do not reflect primary causes of the Great Depression. For instance, the end of World War I contributed to some economic shifts, but it was not a direct contributor to the crisis. New Deal policies were implemented as a response to