USA HISTORY

Detailed explanation-1: -As consumers bought more on the installment plan, the debt forced some to reduce their other purchases. As sales slowed, manufacturers cut production and laid off employees. Jobless workers had to cut back purchases even more, causing business activity to spiral downward.

Detailed explanation-2: -In the 1920s, assembly line production and easy credit made it possible for ordinary Americans to purchase many new consumer goods.

Detailed explanation-3: -By the end of the 1920s, an increasingly sophisticated advertising industry had integrated new techniques in retail, credit, sales management, and consumer research into the marketing process. Marketing efforts accelerated to match businesses’ rapid introduction of new products and services to satisfy consumer markets.

Detailed explanation-4: -The market revolution sparked explosive economic growth and new personal wealth, but it also created a growing lower class of property-less workers and a series of devastating depressions, called “panics.” Many Americans labored for low wages and became trapped in endless cycles of poverty.