Question

During the 1920s, an economic bubble was created when many people engaged in speculation.

What is meant by speculation?


Prices of corporate stocks rise higher than what the company is actually worth

Pouring money into risky investments in hopes of big gains believing that the value of stocks would never stop rising

Using cash to pay for a fraction of the stocks then borrowing money to pay for the remaining balance

Farmers increasing output to make up for lost income which led to more crop surpluses and even lower prices