What were the main factors contributing to the Great Depression?

The main factors contributing to the Great Depression include high unemployment, the stock market crash of 1929, and widespread bank failures. The stock market crash, which occurred in late October 1929, marked the beginning of the economic downturn, leading to a dramatic loss of wealth and investor confidence. This event triggered a chain reaction; as stock prices plummeted, many individuals and businesses found themselves in dire financial straits.

The subsequent bank failures intensified the crisis, as many banks had invested heavily in the stock market or had made risky loans that ultimately defaulted. When people rushed to withdraw their savings, it caused a liquidity crisis, leading to the closure of thousands of banks and further exacerbating economic instability. High unemployment was another significant consequence of these factors; businesses cut back on production and laid off workers, leading to millions of Americans losing their jobs and their ability to spend, which further worsened the economic situation.

In contrast, the other options do not accurately reflect the realities of the era. For instance, the rise of the stock market and increased consumer spending actually occurred during the 1920s, preceding the crash. Increased agricultural production and economic prosperity were misleading as they did not characterize the period leading into the Great Depression; instead