Question

Which of the following led to the Great Depression?

Answer 1

do you have the options to choose from?

Answer 2

Overconfidence in the nation's prosperity - Many people felt that the nation's economic prosperity would never end. A bull market like the one experienced in the 1920's was unheard of back then.

Farmers producing more than they could sell - After World War I, farmers were left with a massive surplus in crops, and could not sell enough of them to make a profit. In addition, the introduction of the automobile hurt the farmer even more, since items like hay for horses were replaced with gasoline for car engines.

United States extending loans to foreign countries for the purchase of its products - Not so much for the purchase of our products, but many of the Allied countries owed a tab to the United States from World War I.

People buying too much on credit - Buying on credit put many people into debt as they bought more than they could afford.

Speculative buying on the stock market - Tying in with the first answer, many people felt that because the stock market was doing so well, it would "reach the heavens." They never considered that it could flop.