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QuizMultiple Choice

Boom and Bust

Question 1 • [HSSUS] US History, Sem 1 (26-27)

How did consumers weaken the economy in the late 1920s?

Answer
A
Consumers only bought a limited number of products.
B
Consumers bought too many goods they could not afford.
C
Consumers refused to pay high prices for agricultural goods.
D
Consumers increased their spending and only used cash.

Explanation

Many consumers bought goods on credit or installment plans, spending beyond what they could afford. As debts grew and people cut back on purchases, demand weakened, leaving businesses with unsold goods and contributing to the economic downturn. The best choice is “Consumers bought too many goods they could not afford.”

AI-written and checked against the verified answer.

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