AnswersMCPSS AL-Grade 6 United States Studies The Industrial Revolution to the Present - Summer School 2026The Beginning of the Great DepressionQuestion 1
1
AssignmentMultiple Choice

The Beginning of the Great Depression

Question 1 • MCPSS AL-Grade 6 United States Studies: The Industrial Revolution to the Present - Summer School 2026

Which statement describes the state of the stock market by the late 1920s?

Answer
A
The stock market became increasingly unstable as prices fell.
B
The stock market began to lose steam as more people bought on margin.
C
The stock market became overvalued as more people invested.
D
The stock market lost value as wealthy investors earned income elsewhere.

Explanation

By the late 1920s, stock prices had risen sharply as more people invested, often expecting prices to keep climbing. This pushed stock values above what companies’ actual earnings could justify, making the market overvalued. Choice C describes this situation.

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