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RCMultiple Choice

Unit Test — Cumulative exam

Question 1 • MA-US History II CR

A main effect of speculative investment during the 1920s was that it

Answer
A
contributed to the stock market crash of 1929.
B
led to great economic growth.
C
resulted in stocks gaining value over time.
D
led to overproduction in the agricultural industry.

Explanation

Speculative investing meant buying stocks in hopes of quickly selling them at a higher price, often with borrowed money. This pushed stock prices above what company earnings could support, creating an unstable market that contributed to the 1929 crash. The correct choice is “contributed to the stock market crash of 1929.”

AI-written and checked against the verified answer.

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