Question

This was common throughout the 1920s, as some investors bought stock
just so its price would rise, and then it could be sold at a profit. This led to
the Crash by continuing to drive paper values of stock while real values
lagged behind: the market crashed because it had no real money to keep it
running. What would be the cause of this?

Answer 1

Answer:

This is because of consumer debt, the use of credit allowed people to buy things when they didn't have the money. therefore everyone was buying things they couldn't afford that was ruining the economy and caused the stock market crash.

Explanation:

Answer 2

• When the consumer debt, the use of credit allowed people to buy things when they didn't have the money. After that therefore everyone was buying things they couldn't afford that were ruining the economy and also that caused the stock market crash.
• When Margin calls People who were in deep debt from buying stocks on a margin throughout the 1920s were then unable to walk away from the stock market just because they needed a huge payoff to cover their debts.
• Also, This led to the Crash because people played the stock market throughout the 1920s without putting enough cash into it to create real value. Thus, this is a Lack of federal regulation In the 1920s the stock market lacked federal supervision or regulation of the stock market

Learn more about:

https://brainly.com/question/12180623