4
lesson pretestMultiple Choice

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Question 4 • US History Studies Since 1877

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

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

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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