Which of these factors led to the stock market crash of 1929?

a. high interest rates

b. low tariff barriers

c. high taxes

d. excessive credit expansion

The correct answer is D) excessive credit expansion.

The factors that led to the stock market crash of 1929 was excessive credit expansion.

The US stock market crash occurred on October 29, 1929. This black Tuesday led to what is known as the Great Depression that lasted until 1939. Stocks were in excess of their real value due to excessive credit expansion and the decline of production and high unemployment. After the stock market crash, people lost their jobs, many companies closed, and banks went into bankruptcy.

when a country suffers, for example, a drought period, the market product is affected for a low offer, in this case, potatoes; the government has to tax to the households, which have to give more money for the potatoes which they consume, that situation make them consume substitute goods even through loans, it could increase the financial market movement and the inflationary phenomena, the business has to increase salaries in order to the employees could buy a more expensive food (potatoes) and in order to inflation tha business had to buy expensive supplies in the factor market, while the rest of the world have to gain more money to consume the same amount of potatoes.