14
QuizMultiple Choice

World War I and the Interwar Years — Test

Question 14 • US History

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

Answer
A
They hired more workers.
B
They stopped buying stocks.
C
They bought stocks on margin.
D
They overproduced goods.

Explanation

Businesses and industries made more goods than consumers could buy. This overproduction led to unsold products, reduced production, and eventually layoffs, which slowed the economy. Buying stocks on margin contributed to financial risk, but it was not the main business practice described here.

AI-written and checked against the verified answer.

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