Multiple choice

By the late 1920s, what changed with American consumers?

  1. They were buying more.

  2. They were buying less.

  3. They were buying the same amount throughout the decade.

  4. None of these.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

By the late 1920s, American consumers began buying less. Many households had accumulated significant debt through installment buying, and wages had stagnated, leaving them with less disposable income. This drop in consumer spending led to an accumulation of unsold goods, forcing factories to cut production and lay off workers.

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