Which of the following was an outcome of the American stock market crash: A) American banks permitted European nations to renegotiate their loans B) International trade remained at pre-war levels. C) Japan, Italy and Germany continued to have faith in the democratic process D) Production declined and unemployment rose.

The stock market crash of 1929 shattered confidence in the American economy, resulting in sharp reductions in spending and investment. (2) Banking panics in the early 1930s caused many banks to fail, decreasing the pool of money available for loans. ... Read more about the stock market crash of 1929.

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