Which of the Following Was Part of the Reason for the Stock

question 20

Multiple Choice

Which of the following was part of the reason for the stock market crash?

• A) the high rate of deflation in the 1920s
• B) the tax policies of the 1920s that hurt the wealthy, who might otherwise have bought more stocks
• C) the buying of great amounts of stock on margin
• D) the low tariff, which allowed imports to corner several important American markets
• E) the remarkably poor returns on government bonds in 1929

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Definitions:

U.S. Securities and Exchange Commission

A U.S. federal agency responsible for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry, the nation's stock and options exchanges, and other related activities and organizations.

Systematic Thinking

A methodical approach to problem solving or decision making that is organized and logical.

Moral Consequences

The outcomes of actions that are evaluated based on their rightness or wrongness according to ethical principles.

Bounded Ethicality

The concept that cognitive biases and organizational contexts can limit individuals’ ability to make ethically optimal decisions.