THE ROARING 20S 1920 1929
AMERICAN POLITICS IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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overproduction and underconsumption
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a decrease in the supply of consumer goods
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an increase in demand for imported products
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an increase in the price of wheat on the world market
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Detailed explanation-1: -The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression.
Detailed explanation-2: -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-3: -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.
Detailed explanation-4: -Underconsumption asserts that consumption of less than is produced is caused by insufficient purchasing power and results in business depression.
Detailed explanation-5: -Overproduction and underconsumption of goods Businesses started to produce more than there was a demand for, which caused them to sell their products and services at a loss. This caused severe deflation, during the Great Depression.