Question

in the 1920s, what did businesses and industries do that caused the economy to slow down?
○ they hired more workers.
○ they stopped buying stocks.
○ they bought stocks on margin.
○ they overproduced goods.

Explanation:

In the 1920s, overproduction by businesses led to a surplus of goods. As supply far outpaced consumer demand (wages did not rise enough for workers to absorb the excess production), businesses faced falling prices, unsold inventory, and cutbacks in production and employment, which slowed the economy. Hiring more workers would stimulate, not slow, the economy. Stopping stock purchases or buying on margin are stock market actions, not the core industrial/business practice that directly caused broad economic slowdown.

Answer:

D. They overproduced goods.