Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

how did consumers weaken the economy in the late 1920s? ○ consumers onl…

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.

Explanation:

Brief Explanations

In the late 1920s, widespread use of credit led many consumers to purchase goods they could not afford. When they could no longer make payments, demand collapsed, contributing to economic instability and the Great Depression. The other options do not align with the key consumer behavior that weakened the economy at that time.

Answer:

B. Consumers bought too many goods they could not afford.