Question

which of these practices contributed to the great depression in the united states?
a. automobile factories produced only as many cars as the government authorized.
b. many americans quit their jobs because the government enacted social welfare programs.
c. factories produced fewer goods in order to maintain a high demand.
d. americans invested and spent beyond their means by taking out large loans.

Explanation:

Before the Great Depression, there was a period of economic prosperity in the US. Many Americans engaged in speculative investing, especially in the stock - market, and took out large loans to finance their investments and consumption. When the stock - market crashed, they were left with huge debts they couldn't pay, which contributed to the economic collapse. Option A is incorrect as automobile production was not restricted by government authorization in a way that led to the Depression. Option B is not true as social welfare programs were not the cause of people quitting jobs and the Depression. Option C is also wrong as over - production rather than under - production was a problem before the Depression.

Answer:

D. Americans invested and spent beyond their means by taking out large loans.