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Question
how did consumers weaken the economy in the late 1920s?
○ consumers only bought a limited number of products.
○ consumers bought too many goods they could not afford.
○ consumers refused to pay high prices for goods.
○ consumers increased their spending and used only cash.
In the late 1920s, widespread use of installment plans led many consumers to purchase goods they could not afford. This overextension of credit created unsustainable debt; when consumers could no longer make payments, demand collapsed, contributing to economic instability and the Great Depression. The other options are incorrect: limited product purchases or refusing high prices would not directly weaken the booming 1920s economy, and using cash for increased spending would not create the debt-driven instability.
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B. Consumers bought too many goods they could not afford.