Which of the Following Factors Was a Contributor to the Great

question 93

Multiple Choice

Which of the following factors was a contributor to the Great Depression?

• A)World War II that began in Europe and quickly spread to other parts of the world
• B)The spread of Communist ideologies across Europe and parts of Asia
• C)The influx of cheap foreign labor into the United States
• D)Countries progressively raising trade barriers against each other

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Definitions:

Market Efficiency

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Security Prices

The market value for tradable financial instruments such as stocks, bonds, and derivatives at any given time.

Efficient-Market Hypothesis

The theory that all available information is already reflected in securities prices, therefore making it impossible to consistently achieve higher returns than the overall market.