All of the following contributed to the start of the Great Depression EXCEPT E people buying goods on Installment plans B companies overproducing goods stocks being bought on margin (borrowed money) D overconsumption by families and individuals

Question

All of the following contributed to the start of the Great Depression EXCEPT E people buying goods on Installment plans B companies overproducing goods stocks being bought on margin (borrowed money) D overconsumption by families and individuals

Answer 1

The answer is **D. Overconsumption by families and individuals**.While overconsumption can contribute to economic instability, it wasn't a primary cause of the Great Depression. The other options were significant factors:* **A. Installment plans:** Widespread use of credit allowed people to buy goods they couldn't afford, leading to massive debt when the economy faltered.* **B. Overproduction of goods:** Factories produced more goods than consumers could buy, leading to falling prices and business failures.* **C. Buying stocks on margin:** This inflated the stock market bubble, and when the market crashed, investors lost heavily, contributing to the banking crisis.

Question

All of the following contributed to the start of the Great Depression EXCEPT E people buying goods on Installment plans B companies overproducing goods stocks being bought on margin (borrowed money) D overconsumption by families and individuals

Solution

Answer