THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Overproduction
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Underconsumption
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Buying on Credit
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Stock Speculation
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Detailed explanation-1: -There was also overproduction of goods in manufacturing and agricultural industries. Because factories produced more goods than there was demand for, there was an oversupply, which led to lower prices. Many companies suffered losses due to this, which led to their share prices plummeting.
Detailed explanation-2: -When their level of debt grew too high, people stopped buying new products. The result was underconsumption of factory goods. Overproduction American businesses produced more goods than people wanted or could afford. Eventually, factories had to close and workers lost their jobs.
Detailed explanation-3: -The Causes of the Great Depression Overproduction: The 1920s witnessed a rapid economic expansion, as manufacturers made and sold new products like cars, radios, and refrigerators. Many consumers lacked the money to buy these goods. Manufacturers were soon producing more goods than they could sell.
Detailed explanation-4: -Overproduction led to major price reductions, unemployment, and loans. It was one of the factor that led to the Great Depression and the Stock Market Crash of 1929.