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

Question 1

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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