Which One of the Following Was a Secondary Effect of the Stock

question 541

Multiple Choice

Which one of the following was a secondary effect of the stock market crash of 1929?

• A) an increase in the money supply in the early 1930s
• B) a decline in consumption expenditures because of the reduction in the wealth of stockholders
• C) an increase in the supply of loanable funds as people transferred funds from the stock market into savings accounts
• D) an increase in tax revenues as the sellers of stocks paid the capital gains tax on stocks that had appreciated during the 1920s

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