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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Which of these factors helped hide economic problems in the 1920’s?
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Wages increased at the same pace as worker productivity
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Farmers sold crop surpluses to pay off their debts
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Investors lost confidence in the market
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Americans purchased many consumer goods on credit
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Explanation:
Detailed explanation-1: -Overproduction and underconsumption were affecting most sectors of the economy. Old industries were in decline. Farm income fell from $22 billion in 1919 to $13 billion in 1929. Farmers’ debts increased to $2 billion.
Detailed explanation-2: -The expansion of credit in the 1920s allowed for the sale of more consumer goods and put automobiles within reach of average Americans.
Detailed explanation-3: -What economic factors and conditions made the American economy appear prosperous in the 1920s?-Automobile and automobile-related industries were booming and employed almost 4 million workers.-Unemployment was low between 1923-1929.
There is 1 question to complete.