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: -What were the major causes of the Great Depression? Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.
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.
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 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.