Which industry showed signs of weakness before the stock market crash and was important to the broader economy?
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Correct answer: Construction industry
Construction slowed before the crash, reducing demand for materials and labor. Weakness in housing and building industries signaled broader economic problems beneath the prosperity of the 1920s.
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More Causes of the Great Depression questions
- Why did the stock market crash not by itself fully explain the Great Depression?
- How did falling consumer demand affect businesses during the early Depression?
- Which statement best summarizes the causes of the Great Depression?
- What was the stock market crash of 1929?
- Which date is commonly known as Black Tuesday?
- What does buying stock 'on margin' mean?