The Great Depression

AP US History· difficulty 3/5

— Black Tuesday newspaper headline (October 29, 1929)

Underlying causes of the 1929 crash included all of the following EXCEPT

  • A

    heavy federal income-tax increases on the wealthy during the 1920s

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  • B

    rampant buying of stocks on margin

  • C

    speculative investment trusts and pyramiding holding companies

  • D

    weak agricultural and industrial demand

Explanation

Tax rates on top incomes were cut sharply under Mellon during the 1920s; margin buying, weak demand, and speculative pyramiding were all genuine causes of the crash.

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