THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Dow Jones Industrial Average rose.
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Innovations led to the birth of new industries.
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The majority of farmers saw their incomes rise.
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Speculators made money on the Land Boom.
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Detailed explanation-1: -The main reasons for America’s economic boom in the 1920s were technological progress which led to the mass production of goods, the electrification of America, new mass marketing techniques, the availability of cheap credit and increased employment which, in turn, created a huge amount of consumers.
Detailed explanation-2: -The cause of a boom is an increase in consumer spending. As the economy improves, families become more confident. They are buoyed by better jobs, rising home prices, and a good return on their investments. As a result, they no longer need to delay major purchases.
Detailed explanation-3: -The prosperity of the 1920s led to new patterns of consumption, or purchasing consumer goods like radios, cars, vacuums, beauty products or clothing. 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-4: -Advances in technology, mass production, and new advertising methods led to a vibrant consumer culture. Advertising came into its own throughout the 1920s. Installment buying, or buying on credit, allowed Americans to purchase expensive items like automobiles and refrigerators.