Which was the FIRST group in society to feel the effects of the Great Depression and why? A) Factory workers were impacted first due to unemployment. B) Investors were impacted first because of the stock market crash. C) Business owners were impacted first due to lower profit margins. D) Farmers were impacted first due to post-war changes in demands for crops.
History · Middle School · Thu Feb 04 2021
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B) Investors were impacted first because of the stock market crash. The Great Depression started with the stock market crash in October 1929. Investors who had put their money into stocks experienced massive losses as the stock prices plummeted. Many investors had purchased stocks on margin, which means they had borrowed money to buy more stock. When the market crashed, they were unable to pay back the loans, leading to personal financial ruin and a chain reaction of bank failures.