What were the causes and effects of the stock market crash in 1929? small answers please?
Answer:
Beesting is on the right track. The fed created an easy money/credit environment that flooded the system with liquidity which led to the run up in the market.
When the runup was no longer sustainable and the market crashed, there were actually 3 things that happened that caused the great depression:
1) The fed contracted the money supply, thus making it harder to get money (bad when people were losing money in the crash).
2) The gov't raised the marginal tax rate (remember, the income tax was still fairly new - implemented in 1913).
3) Passing of the Smoot-Hawley Act. By 1930 the US Economy had weathered the crash by due to robust world trade, but the Smoot-Hawley act was a protectionist act, thus it was what drove the nail in the coffin of the U.S. economy and the world in general.
Do your own homework, you'll never get ahead this way.
do your own homework.how's that for small...
what was the year again lol
Cause: ban on alcohol
Effect: the great depression
well, iam not very sure, but cause was that the whole concentration of the economy was on supply and not the demand, people didn't had money to buy goods, still production was going on because at that time producer and not the consumer was the king of the market.
EFFECT= Great depression
Nooooo.
Do. Your. Own. Homework.
The federal reserve bank put too many dollars into circulation, which caused the stock market crash.
The effect was the FED tightened the money supply, trying to contract the money supply causing the great depression.
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