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QuizMultiple Choice

Boom and Bust — Quiz

Question 2 • US History Studies Since 1877

In the 1920s, what did businesses and industries do that caused the economy to slow down?

Answer
A
They speculated in the stock market.
B
They overproduced goods.
C
They bought stocks on margin.
D
They hired more workers.

Explanation

Businesses and industries produced more goods than consumers could afford to buy. As unsold products piled up, companies cut back production, which slowed economic activity. The correct choice is A, “They overproduced goods.”

AI-written and checked against the verified answer.

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