2
QuizMultiple Choice

Boom and Bust

Question 2 • [HSSUS] US History, Sem 1 (26-27)

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

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

Explanation

Businesses produced more goods than consumers could buy, so products built up in warehouses and sales fell. This overproduction led companies to cut back production and employment, contributing to an economic slowdown. The correct choice is “They overproduced goods.”

AI-written and checked against the verified answer.

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