What contributed to the onset of the economic depression in 1929? a. Fierce competition fostered overproduction and market saturation. b. Investors purchased stocks on margin, advancing as little as 10% of the purchase price. c. As sales fell, manufacturers’ profits declined. d. Reduced consumption caused companies to downsize and layoff employees. e. All of the above contributed to the onset of the economic depression in 1929.

The correct answer is e. All of the above contributed to the onset of the economic depression in 1929.

Explanation:

The causes of the great depression date back to the First World War, which brought great economic consequences mainly in Europe, where there was also a 10% decrease in the population. Most of the European countries were mired in large public debts and inflation. After this war, the world economic map changed with great economic and industrial impulse from non-participating countries such as the USA. and Japan .

The accelerated growth of the US against the various European powers generated a transformation in its economy and excessive use of credit (speculative bubble), which led to the fall of the New York Stock Exchange in 1929. The bankruptcy of Wall Street , known as Black Tuesday, occurred on October 29, 1929, with losses in shares greater than 50% of all companies, as well as the successive bankruptcy of hundreds of banks.

Other historical events coincided with the origin of the great depression, such as the 1922 Genoa conference, which modified the values and management of gold and the pound, as well as other political factors such as wage stiffness.

Industrial overproduction with a decline in investment in agriculture, contributed to a fictitious economic expansion of countries such as the US, Japan, Canada or Australia, while the European economy remained in collapse.

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