Why did the U.S. stock market crash lead to a global economic depression?
A) The United States was unable to pay its war debts to European nations, which led to widespread economic collapse.
B) American lenders called in their international debts, which undermined banks and industry abroad.
C) American banks had borrowed so heavily from foreign lenders that the crash destabilized foreign currencies.
D) Most foreign companies traded their stock on the U.S. market, so they became weak and unstable.
Correct Answer:
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