American Life in the Great Depression

Question 1

In the 1920s, the danger of buying stock on margin was that if the value of the stock dropped, borrowers

Revolt · Accepted Answer

had to make up the difference.

Question 2

Which statement best explains how farming affected the economic slowdown that led to the Great Depression?

Revolt · Accepted Answer

Even though prices and demand were falling, production increased.

Question 3

Which industry boosted consumerism in the 1920s, feeding economic growth?

Revolt · Accepted Answer

advertising

Question 4

While consumerism during the 1920s boosted the economy, it also led to

Revolt · Accepted Answer

higher debt.

Question 5

During the 1920s, people would buy stock on margin, which meant that they

Revolt · Accepted Answer

bought it on credit.

Question 6

How did the overproduction of goods in the 1920s affect consumer prices, and in turn, the economy?

Revolt · Accepted Answer

Consumer demand decreased, prices decreased, and the economy slowed.

Question 7

Businesses and industries in the 1920s most closely followed the buying demands of

Revolt · Accepted Answer

consumers.

Question 8

What does a strong economy depend on the most?

Revolt · Accepted Answer

most people’s confidence in the economy.

Question 9

In the 1920s, many rural banks failed because

Revolt · Accepted Answer

farmers could not repay their loans.

American Life in the Great Depression Answers