What situation contributed to the economic problems of the late 1920s?

The 1920’s was marked by drastic events in the U.S economy. After a decade of very high economic growth and boom in manufacturing (the Roaring Twenties), the Wall Street stock market began to slide down on October 24, 1929, and by November stock prices lost as much as 40% of its value. The drop was caused by overproduction of agricultural produce. The resulting oversupply caused farmer’s incomes to drop. People also purchased stocks using borrowed money,which contributed further to the slide.

the answer is: must pay taxes on profits

since it is considered as a part of your income, profits from investments is eligible for tax payment.

the tax from your investment could be influenced by how long you decided to sell it. united states promotes keeping your investment for long term period. so, the tax rate for investments that you sell in less than one year is typically higher compared to investments that you sell in more than one year period.

although world war i began in 1914, the united states did not join the war until 1917. the additional firepower, resources, and soldiers of the u.s. to tip the balance of the war in favor of the allies. remaining neutral. when war broke out in 1914, the united states had a policy of neutrality.